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Summer Internship Project Report

on
Creating and Managing the
Portfolios of Wealth Clients in
IndusInd Bank
Submitted to:

IndusInd Bank Birla Institute of Management Technology
A.S. Raja Complex, Care Hospital, Knowledge Park II,
altair !ain Road, "reater #oida,
$is%ak%apatnam & '() ))* +ttar Prades% & *),()-
Submitted b.:
VSreelaksmi
P"/! 0,,1,(2
,,/!,'-

I!"#$
Page
!o
Index i
3ist o4 5ables iii
3ist o4 6igures iii
3ist o4 "rap%s iii
Summer Interns%ip Certi4i7ate & Industr. !entor i8
Summer Interns%ip Certi4i7ate & 6a7ult. !entor 8
3etter o4 Aut%ori9ation 8i
A7knowledgement 8ii
3etter o4 5ransmittal
8iii
:xe7uti8e Summar. ix
% I!TR&"'CTI&!
,., Compan. ;a7kground ,
,.* Produ7t ;a7kground
,.*., Introdu7tion to t%e 7on7ept o4 wealt% -
,.*.* Introdu7tion to t%e 7on7ept o4 wealt% management <
( )IT#R*T'R# R#VI#W
*., :7onomi7 times )=1)=1*),*
,*
*.* !arkowit9 Port4olio 5%eor.
,* *.( S+!!I5 As7endant !et%odologies
,(
*.= 5exas A>! +ni8ersit.
*)
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+ T*S, "#-I!ITI&!
(., Introdu7tion to t%e Resear7%
**
(.* ;anking Se7tor in ealt% !anagement
**
(.( Current State o4 ealt% !anagement in India
**
(.= IndusInd ;ank in ealt% !anagement Se7tor
*=
. R#S#*RC/ M#T/&"&)&01
=., Creation o4 port4olio
=-
=.* Sele7ting t%e rig%t in8estments
=-
=.( +pdating t%e port4olio
=<
2 C&MP#TIT&R *!*)1SIS
=?
3 -I!"I!0S *!" R#S')TS
=@
4 C&!C)'SI&!
')
5 )IMIT*TI&!S *!" C*V#*TS
',
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6 S'00#STI&!S *!" R#C&MM#!"*TI&!S
',
R#-#R#!C#S
'*
*PP#!"I$
A,: Customer Pro4iler
'(
A*: :du7ational Cost Cal7ulator
'=
A(: Retirement Planner
''
A=: H3$ Cal7ulator
'-
A': 5ax Cal7ulator
'<
A-: Ris%te. 6orm
'?
A<: Comparati8e Statement o4 "old rates as on Aks%a.atriti.a *),*
'@
A?: Comparati8e Statement o4 5erm Plans
-)
A@: Comparati8e Statement o4 5raditional Plans
-,
)IST &- T*B)#S
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5able ,: 6inan7ial Ratios o4 t%e bank 4or t%e .ear *),,1,*
)'
5able *: 6inan7ial Status o4 t%e bank 4or t%e .ear *),,1,*
)'
)IST &- -I0'R#S
6igure ,: Pro7ess o4 ealt% !anagement )@
6igure *: :44i7ient 6rontier ,(
6igure (: Resour7e allo7ation and utili9ation pro7ess in Asset !anagement *,
6igure =: Pro7ess o4 !utual 6unds *-
6igure ': S7reen s%ot o4 t%e Ris%te. 4orm ',
)IST &- 0R*P/S
"rap% ,: 6inan7ial Status o4 t%e bank 4or t%e .ear *),,1,* )-
5 | P a g e

#7ecuti8e Summary
In India, t%e 7on7ept o4 sa8ing t%e liAuid assets smartl. is not 8er. 4amous .et. People are
.et sa8ing t%eir sa8ings in 6ixed /eposits or "old et7 w%i7% are t%e traditional st.le o4
doing so.
s%e 7on7ept o4 wealt% management is not 4amiliar among t%e people .et. 5%e. 4ind it
unsuitable due to la7k o4 trust and in7onsistent knowledge about t%e 4inan7ial market.
5%e banks are %elping t%e people o8er7ome t%is 4ear b. pro8iding t%e same ser8i7es.
IndusInd ;ank being a bank o4 new generation is %ig%l. attra7ting people. :8en t%oug% t%e
bank is not selling an. o4 its own produ7ts, t%e relations%ip wit% t%e 7ustomers is
appre7iable and t%us making t%e 7ompan. pro4itable.
5%e wealt% management produ7ts %a8e been sele7ted b. t%e bank 7are4ull. and so to learn
t%e te7%niAues o4 intera7ting wit% t%e 7ustomers and 7on8in7ing t%em, making t%em bu.
.our produ7t and 4ul4illing t%eir demands is a di44i7ult task.
5%is is w%at t%e proje7t %as 7o8ered. 5%e wealt% managers at IndusInd bank: %ow t%e.
work , %ow t%e. manage t%e di44erent port4olios wit% di44erent reAuirements et7 %as been
studied under t%e proje7t.
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Chapter %9 I!TR&"'CTI&!
%% Company Background:
Compan. Pro4ile:
;'sing Technology "elighting Customers<
;S:: '(*,?< B #S:: I#/+SI#/;K B ISI#: I#:)@'A),),*
!arket Cap: CRs.Cr.D ,',*)= B 6a7e $alue: CRs.D ,)
Industr.: ;anks 1 Pri8ate Se7tor
IndusInd ;ank deri8es its name and inspiration 4rom t%e Indus $alle. 7i8ilisation 1a 7ulture des7ribed b. #ational
"eograp%i7 as Eone o4 t%e greatest o4 t%e an7ient worldE 7ombining a spirit o4 inno8ation wit% sound business and
trade pra7ti7es.
!r. Sri7%and P. Hinduja, a leading #on1Resident Indian businessman and %ead o4 t%e Hinduja "roup, 7on7ei8ed
t%e 8ision o4 IndusInd ;ank 1t%e 4irst o4 t%e new1generation pri8ate banks in India 1and t%roug% 7olle7ti8e
7ontributions 4rom t%e #RI 7ommunit. towards IndiaEs e7onomi7 and so7ial de8elopment, broug%t our ;ank into
being.
5%e ;ank, 4ormall. inaugurated in April ,@@= b. /r. !anmo%an Sing%, Honourable Prime !inister o4 India w%o
was t%en t%e 7ountr.Fs 6inan7e !inister, started wit% a 7apital base o4 Rs.,,))) million 0+S/ (* million at t%e
pre8ailing ex7%ange rate2, o4 w%i7% Rs.-)) million was raised t%roug% pri8ate pla7ement 4rom Indian Residents
w%ile t%e balan7e Rs.=)) million 0+S/ ,( million2 was 7ontributed b. #on1Resident Indians.
IndusInd ;ank 3imited is a !umbai based India new generation bank, establis%ed in ,@@=. 5%e bank o44ers
7ommer7ial, transa7tional and ele7troni7 banking produ7ts and ser8i7es. 5%e ;ankEs business lines in7lude
7orporate banking, retail banking, treasur. and 4oreign ex7%ange, in8estment banking, 7apital markets, non1
resident IndianG%ig%1net1wort% indi8idual banking, and in4ormation te7%nolog.. 5%e ;ank business di8isions
in7lude RetailG Consumer ;anking, Consumer 6inan7e, "lobal !arkets "roup, Corporate > Commer7ial
;anking, 5ransa7tion ;anking "roup and In8estment ;anking. 5%e ;ank pro8ides multi17%annel 4a7ilities, w%i7%
in7ludes automated teller ma7%ines 0A5!s2, net banking, mobile banking, p%one banking, multi17it. banking and
international debit 7ards.
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5%e ;ank %as multi1lateral tie1ups wit% ot%er banks pro8iding a77ess to more t%an ,?))) A5!s 4or t%eir
7ustomers. 5%e. enjo. 7learing bank status 4or bot% major sto7k ex7%anges 1 ;S: and #S: 1 and t%ree major
7ommodit. ex7%anges in t%e 7ountr. 1 !CH, #C/:H, and #!C:. 5%e. also o44er /P 4a7ilities 4or sto7k and
7ommodit. segments.
IndusInd ;ank 3td was in7orporated in t%e .ear ,@@= and was promoted b. !r Sri7%and P Hinduja, a leading
#on1Resident Indian businessman and %ead o4 t%e Hinduja "roup. 5%e ;ank started t%eir operations wit% a 7apital
amount o4 Rs. ,,))) million among w%i7% Rs. -)) million was donated b. t%e Indian Residents and Rs. =))
million was raised b. t%e #on1Resident Indians.
5%e 7ompan. is a pioneer in laun7%ing internet ;anking. 5%e. are rated as one o4 t%e 5op Per4orming ;anks in
8arious sur8e. reports. /uring t%e .ear *)),1)*, t%e ;ank in7reased t%eir network 4rom (- to <<. /uring t%e .ear
*))*1)(, t%e ;ank entered into ele7troni7 mone. trans4er arrangements wit% !one."ram International 3td, +SA
and Io%a In7 +SA 4or attra7ting bene4i7iaries o4 small 8alue remittan7e 4rom o8erseas. 5%us, t%e. be7ame t%e
4irst to implement t%e R;I1:le7troni7 6unds 5rans4er s7%eme. Also, t%e. entered into bullion trading a7ti8ities and
4inan7ial ser8i7es to Indian entities setting up joint 8entures and w%oll.1owned subsidiaries abroad. IndusInd
:nterprises > 6inan7e 3td, a #on1;anking 6inan7e 7ompan. and one o4 t%e promoters o4 t%e ;ank amalgamated
wit% t%e ;ank wit% e44e7t 4rom Jul. ,,, *))(. As a result, IndusInd In4ormation 5e7%nolog. 3td be7ame a
subsidiar. o4 t%e ;ank.
/uring t%e .ear, t%e bank in7reased t%eir network to ,*< 4rom << outlets. /uring t%e .ear *))(1)=, t%e ;ank
opened t%eir representati8e o44i7e in /ubai. 5%e. laun7%ed t%eir debit 7ard wit% t%e name International Power
Card.. Also, a total o4 (, new A5!s were installed, w%i7% in7ludes ,' on1site A5!s and ,- o441site A5!s.
As%ok 3e.land 6inan7e 3td, a leading #on1;anking 6inan7e 7ompan. merged wit% t%e ;ank wit% e44e7t 4rom
June ,,, *))=. /uring t%e .ear *))=1)', t%e ;ank signed an agreement wit% #C/:H as 7learing banker. 5%e.
laun7%ed 8arious inno8ati8e produ7ts and ser8i7es, w%i7% in7ludes International !a%ila Card, !obile 5op1ups,
+tilit. ;ill Pa.ment et7. 5%e. opened t%eir se7ond representati8e o44i7e in 3ondon. Also, t%e ;ank entered
bilateral tie1up wit% Corporation ;ank and wit% +5I ;ank, in w%i7% t%e ;ankEs 7ustomer 7an utili9e t%eir A5!s
a7ross t%e 7ountr..
/uring t%e .ear *))-1)<, t%e ;ank added a number o4 new business and produ7t lines w%i7% in7ludes t%e laun7%
o4 Indus "old and Indus "i4t Card and :1Remittan7e 4a7ilit.. 5%e. made a tie1up wit% Religare Se7urities 4or
extending Port4olio !anagement ser8i7es. 5%e. also made a tie up wit% A8i8a 3i4e Insuran7e 4or ban7assuran7e.
5%e ;ank opened (( bran7%es and set up =, o44site A5!s during t%e .ear. /uring t%e .ear *))<1)?, t%e ;ank
signed an agreement wit% #ational !ulti Commodit. :x7%ange 3td 0#!C:2 to be7ome t%eir 7learing bank. 5%e.
made a strategi7 tie1up wit% Religare Se7urities 4or o44ering a 8alue1added (1in1, sa8ings a77ounts1linked pa7kage
to 7ustomers 1 7omprising a sa8ings bank a77ount, a depositor. a77ount, and an Internet trading a77ount. Also,
t%e. made a strategi7 partners%ip wit% C%olamandalam !S 4or ban7assuran7e.
/uring t%e .ear *))<1)?, t%e ;ank was awarded t%e %ig%est A,K rating 4or t%eir Certi4i7ates o4 /eposit b. ICRA
and t%e %ig%est P,K rating 4or t%eir 6ixed /eposits and Certi4i7ates o4 /eposit b. CRISI3. 5%e. also re7ei8ed
re7ognition b. ;S: and #ASSCL! 6oundation 4or t%e ;est Corporate So7ial Responsibilit. Pra7ti7e Categor..
In Jul. *))?, t%e ;ank was awarded 5%e Smart orkpla7e Award b. :7onomi7 5imes in asso7iation wit% A7er
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and Intel 4or en%an7ing t%e produ7ti8it. o4 t%e emplo.ees t%roug% optimum use o4 resour7es as well as
te7%nolog..
/uring t%e .ear *))?1)@, t%e ;ank laun7%ed 8arious new produ7ts and ser8i7es w%i7% were targeted at building
wealt% management 7apabilities as well as en%an7ing t%e existing banking 7%annels. 5%e ;ank laun7%ed t%e "old
and In8estment 8erti7als, w%i7% 7ontributed in ex7ess o4 Rs' 7rore o4 re8enue in t%e 4irst .ear o4 operations. 5%e.
also laun7%ed two new 7%annels 1 ealt% Relations%ip !anagers and t%e Central A7Auisition 5eam 0CA52. 5%e
;ank 7ommen7ed t%e pro7ess o4 opening Enew look bran7%esE to en%an7e t%e banking experien7e o4 7ustomers and
to pro8ide personal attention to t%eir needs. 5%e. alread. opened 4i8e bran7%es wit% t%e new look at ;andra,
Kolkata, 3ud%iana, $adodara and 3u7know.
In August *))?, t%e ;ank a7Auired t%e mi7ro14inan7e port4olio 4rom SKS !ir7o4inan7e. In L7tober *))?, t%e.
signed a 7o1partner agreement wit% orld "old Coun7il 4or joint promotion o4 pa7kaged and 7erti4ied gold 7oins
and ingots in India. In #o8ember *))?, t%e ;ank entered into an agreement wit% 5$S !otor Compan. w%ere t%e
;ank will pro8ide stru7tured in8entor. 4unding to 5$S !otorsE dealers. In Januar. *))@, t%e. entered into a !o+
wit% CRISI3 to rate t%e ;ankEs 7lients.
/uring t%e .ear *))@1,), t%e ;ank opened () new bran7%es and ,=, A5!s as a part o4 t%e strateg. o4 expanding
banking network to di44erent lo7ations in t%e 7ountr.. 5%e ;ank re1laun7%ed t%e #on1Resident 0#R2 business,
w%i7% a7Auired ,*,))) new #R 7lients wit%in a s%ort span and also mobili9ed signi4i7ant 6C#R book and sa8ings
a77ount book. 5%e bank %as presen7e in *? States and +nion 5erritories. In addition, t%e bank also %as
Representati8e L44i7es in 3ondon and /ubai.
In L7tober *),,, t%e ;ank entered into an arrangement wit% !os7ow1based 7ommer7ial bank JC; +nistream 4or
India bound remittan7es. In 6ebruar. *),,, t%e. signed an !o+ wit% !a%indra > !a%indra 3td in w%i7% t%e
;ank will be one o4 t%e pre4erred 4inan7iers 4or t%e entire range o4 8e%i7les sold b. !a%indra > !a%indra 3td and
also extend passenger and 7ommer7ial 8e%i7le 4inan7e to t%eir 7ustomers. In June *),,, t%e ;ank signed an
agreement wit% Atos orldline India 0$enture In4otek2 4or point o4 sale 0PLS2 a7Auiring solutions.
* !e= #ra
IndusInd ;ank, w%i7% 7ommen7ed its operations in ,@@=, 7aters to t%e needs o4 bot% 7onsumer and 7orporate
7ustomers. It %as a robust te7%nolog. plat4orm supporting multi17%annel deli8er. 7apabilities. IndusInd ;ank %as
(-' bran7%es, and -<= A5!s spread a7ross *'= geograp%i7 lo7ations o4 t%e 7ountr. as on /e7ember (,, *),,.5%e
;ank also %as * Representati8e o44i7es, one ea7% in 3ondon and /ubai.
5%e ;ank belie8es in dri8ing its business t%roug% te7%nolog.. It %as multi1lateral tie1ups wit% ot%er banks
pro8iding a77ess to t%eir A5!s 4or its 7ustomers. It enjo.s 7learing bank status 4or bot% major sto7k ex7%anges 1
;S: and #S: 1 and t%ree major 7ommodit. ex7%anges in t%e 7ountr. 1 !CH, #C/:H, and #!C:. It also o44ers
/P 4a7ilities 4or sto7k and 7ommodit. segments. 5%e ;ank %as been bestowed wit% t%e mandate o4 being a
Settlement ;anker 4or six tea au7tion 7entres.
R*TI!0S9
9 | P a g e

MICRA AAF 4or 3ower 5ier II subordinate debt program and MICRA AA1M 4or +pper 5ier II bond program b.
ICRA. MCRISI3 A,KF 4or 7erti4i7ate o4 deposit program b. CRISI3. MCAR: AAF 4or 3ower 5ier II subordinate
debt program b. CAR:. M6it7% AA1M 4or 3ong 5erm /ebt Instruments and M6it7% A,KF 4or S%ort 5erm /ebt
Instruments b. 6it7% Ratings.
Makes you feel richer:
IndusInd ;ank %as been aggressi8e in its brand building program sin7e last .ear. As a part o4 t%e brand building
exer7ise, t%e bank %as taken man. initiati8es w%i7% %a8e %elped t%e brand 7onne7t up wit% t%e 7ustomers >
en%an7e t%e 8isibilit. Auotient. IndusInd ;ank %ad laun7%ed its 4irst e8er mass media 7ampaign in !a.1June *))@
along wit% its pun7%line N!akes .ou 4eel ri7%erO and sin7e t%en, t%e bank %as been 7onsistent in 7ommuni7ation
t%roug% 5ele8ision, Radio, and Lutdoor > print ad8ertising.
IndusInd ;ank understands its 7ustomersF mone. is not just mone.. It is t%e 8e%i7le to realise t%eir dreamsP
Hen7e, t%e bank aims to ensure t%at t%e 7ustomersF experien7e wit% t%e bank is pleasant and enri7%ing. 5%at t%e.
get 8alue 4or t%eir mone., enabling t%em to lead a ri7%er, 4uller, 7ontent li4e... 6or t%is, t%e bank:
L44ers a new le8el o4 banking & better ser8i7es, better understanding o4 uniAue needs and better
management o4 4inan7es
/em.sti4ies t%e banking pro7ess and makes it more a77essible
Apart 4rom 4ul4illing traditional banking responsibilities, ad8ises 7ustomers on %ow and w%ere to use t%eir
mone. to get t%e best out o4 it
Proje7ts an image o4 being a .oung, energeti7, modern bank wit% 8alues o4 d.namism, 7on4iden7e and
progression
6urt%er, as a banking partner, t%e bank also aims to %elp its 7ustomers dis7o8er %ow t%e. 7an do more t%ings wit%
t%eir mone..
In t%e re7ent ad8ertising 7ampaign, t%e ;ank rein4or7es its 4o7us on Inno8ati8e banking based on t%e p%ilosop%.
o4 Responsi8e Inno8ation. 5%e bank is taking Mresponsi8enessF t%eme to 7ustomers and rein4or7es its 7ommitment
to gi8e best1o417lass ser8i7es in t%e industr..
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Mission > Vision
Mission
5%e bankFs mission is to 7onsistentl. add 8alue to all its stake%olders and emerge as t%e ;est in 7lass in t%e 7%osen
parameters amongst t%e 7omit. o4 banks, b. doubling our pro4its, 7lients and bran7%es wit%in t%e next t%ree .ears.
Vision
IndusInd ;ank will be:
A rele8ant business and banking partner to its 7lients
Customer Responsi8e, stri8ing at all times to 7ollaborate wit% 7lients in pro8iding solutions 4or t%eir
;anking needs
A 4orerunner in t%e market pla7e in terms o4 pro4itabilit., produ7ti8it. and e44i7ien7.
:ngaged wit% all our stake%olders and will deli8er sustainable and 7ompliant returns.
-inancial Performance9

Particulars ?in @A
B. B.
-1%( -1%%
Return on Assets 0RoA2 ,.-) ,.''
Return on :Auit. 0Ro:2 *).)) ,?.,(
Capital AdeAua7. Ratio 0CAR2 ,(.?' ,'.?@
Capital AdeAua7. Ratio 1 5ier I ,,.(< ,*.*@
#et #PA ).*< ).*?
Pro8ision Co8erage Ratio <*.<* <*.-,
#et Interest !argin (.*@ (.')
5able ,: 6inan7ial ratios o4 t%e bank 4or t%e .ear *),, and *),*
11 | P a g e

(C%%:%( (C%C:%%
!et =orth ?in croresA ='**.(< (?*'
!et Profit?in croresA ?)*.-, '<<.(*
!et Interest?in croresA ,<)=.*' ,(<-.=@
Core fee income?in croresA @,(.*= -*@.=(
Capital *deDuacy Ratio ?Base IIIA ,(.?'Q ,'.?@Q
Return on *ssets ?Ro*A ,.'<Q ,.''Q
!et !P* ).*<Q ).*?Q
Pro8isioning Co8erage Ratio against !P*s <*.<*Q <*.-,Q
#PS ,<.*) ,(.,-
"i8idend "eclared **Q *)Q
5able *: 6inan7ial status o4 t%e bank 4or t%e .ear *),, and *),*
12 | P a g e

"rap% ,: 6inan7ial status o4 t%e bank 4or t%e .ear *),, and *),*
%( Product Background
%(%9 Introduction to the concept of Wealth9
ealt% is a measure o4 t%e 8alue o4 all t%e assets owned b. a person, 7ommunit., 7ompan. or 7ountr.. ItFs
7al7ulated b. taking total market 8alue o4 all t%e p%.si7al and intangible assets o4 t%e entit. and subtra7ting t%e
debts. Lne 7an also sa. t%at wealt% is an a77umulation o4 8aluable resour7es. It is expressed in man. wa.s. 6or
e.g.: 4or indi8idualsF net wealt% is 7ommonl. expressed in terms o4 net wort% w%ile 7ountries measure b. "ross
/omesti7 Produ7t 0"/P2 et7.
Con7epts o4 wealt% 8ar. among so7ieties. Ant%ropolog. 7%ara7teri9es so7ieties, in part, based on a so7iet.Es
7on7ept o4 wealt%, and t%e institutional stru7tures and power used to prote7t t%is wealt%.
Adam Smit% saw wealt% 7reation as t%e 7ombination o4 materials, labour, land, andte7%nolog. in su7% a wa. as to
7apture a pro4it. 5%e t%eories o4 /a8id Ri7ardo, Jo%n 3o7ke, Jo%n Stuart !ill, and later, Karl !arx, in t%e ,?t%
13 | P a g e

7entur. and ,@t% 7entur. built on t%ese 8iews o4 wealt% t%at we now 7all 7lassi7al e7onomi7s and !arxist
e7onomi7s. !i7%el 6ou7ault 7ommented t%at t%e 7on7ept o4 man as an aggregate did not exist be4ore t%e ,?t%
7entur.. 5%e s%i4t 4rom t%e anal.sis o4 an indi8idualEs wealt% to t%e 7on7ept o4 an aggregation o4 all men is implied
in t%e 7on7epts o4 politi7al e7onom. and t%en e7onomi7s. 5%is transition took pla7e as a result o4 a 7ultural bias
in%erent in t%e enlig%tenment. ealt% was seen as an obje7ti8e 4a7t o4 li8ing as a %uman being in a so7iet.. Some
people belie8e wealt% is a 9ero1sum game, w%ere t%ere is a limited amount o4 wealt% and some must lose in order
4or ot%ers to gain. As a result t%e. are 7on7erned primaril. wit% issues o4 wealt% distribution rat%er t%an wealt%
7reation. Lt%ers belie8e t%at wealt% 7an be readil. 7reated. 5%e. 4eel t%at wealt% is not a 4ixed amount to be
distributed. 5o most o4 t%ese people, organi9ing a so7iet. so as to optimi9e t%e growt% o4 wealt% is more important
t%an distribution issues.
Sources of =ealth
ealt% is 7reated t%roug% se8eral means.
#atural resour7es 7an be %ar8ested and sold to t%ose w%o want t%em.
!aterial 7an be 7%anged into somet%ing more 8aluable t%roug% proper appli7ation o4 labour and eAuipment.
;etter met%ods also 7reate wealt% b. allowing 4aster 7reation o4 wealt%.
Ideas 7reate wealt% b. allowing it to be 7reated 4aster or wit% new met%ods.

%((9 Introduction to the concept of Wealth Management9
ealt% management is an in8estment ad8isor. dis7ipline t%at in7orporates 4inan7ial planning, in8estment port4olio
management and a number o4 aggregated 4inan7ial ser8i7es. Hig% #et wort% Indi8iduals 0H#Is2, small business
owners and 4amilies w%o desire t%e assistan7e o4 a 7redentialed 4inan7ial ad8isor. spe7ialist 7all upon wealt%
managers to 7oordinate retail banking, estate planning, legal resour7es, tax pro4essionals and in8estment
management. ealt% managers 7an be an independent Certi4ied 6inan7ial Planner, !;As, C%artered Strategi7
ealt% Pro4essional, C6A C%arter %olders or an. 7redentialed pro4essional mone. manager w%o works to en%an7e
as a %ig%1le8el 4orm o4 pri8ate banking 4or t%e espe7iall. a44luent.
It is a %ig%l. 7ustomi9ed and sop%isti7ated in8estment management and 4inan7ial planning ser8i7es deli8ered to
%ig% net wort% in8estors. "enerall., t%is in7ludes ad8i7e on t%e use o4 trusts and ot%er estate planning, 8e%i7les,
business su77ession or sto7k option planning, and t%e use o4 %edging deri8ati8es 4or large blo7ks o4 sto7k.
5raditionall., t%e wealt%iest retail 7lients o4 in8estment 4irms demanded a greater le8el o4 ser8i7e, produ7t
o44ering and sales personnel t%an were re7ei8ed b. t%e a8erage 7lients. it% an in7rease in t%e number o4 a44luent
in8estors in re7ent .ears, t%ere %as been an in7reasing demand 4or sop%isti7ated 4inan7ial solutions and expertise
t%roug%out t%e world.
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ealt% !anagement is also known as Port4olio !anagement and Asset !anagement. 5ill date, wealt%
management ser8i7es in India in7luded in8estment in eAuit.1linked port4olio management ser8i7es, stru7tured
produ7ts, insuran7e and mutual 4unds. ;ut 7ompanies %a8e started broadening t%e s7ope to in7lude tax planning >
assessment, real estate, art ad8isor. and estate planning, wit%in its ambit. ealt% management ser8i7e pro8iders
%a8e segmented t%e Indian market into 4our 7ategories: t%e mass market 0in8estible surplus +S/',))) to *',)))2R
t%e mass a44luent 0+S/*',))) to , million2R t%e %ig%1net1wort% 0+S/, million to () million2 and t%e ultra1%ig%
net wort% 0greater t%an +S/() million2.
&Ejecti8es of Wealth Management9
a2 Capital Preser8ation : Capital preser8ation is t%e need to maintain 7apital. 5o a77omplis% t%is obje7ti8e,
t%e return obje7ti8e s%ould, at a minimum, be eAual to t%e in4lation rate. In ot%er words, nominal rate o4
return would eAual t%e in4lation rate. it% t%is obje7ti8e, an in8estor simpl. wants to preser8e %is existing
7apital.
b2 Capital *ppreciation :Capital appre7iation is t%e need to grow, rat%er t%an simpl. preser8e, 7apital. 5o
a77omplis% t%is obje7ti8e, t%e return obje7ti8e s%ould be eAual to a return t%at ex7eeds t%e expe7ted
in4lation. it% t%is obje7ti8e, an in8estorEs intention is to grow %is existing 7apital base.
72 Current Income :Current in7ome is t%e need to 7reate in7ome 4rom t%e in8estorEs 7apital base. it% t%is
obje7ti8e, an in8estor needs to generate in7ome 4rom %is in8estments. 5%is is 4reAuentl. seen wit% retired
in8estors w%o no longer %a8e in7ome 4rom work and need to generate in7ome o44 o4 t%eir in8estments to
meet li8ing expenses and ot%er spending needs.
d2 Total Return : 5otal return is t%e need to grow t%e 7apital base t%roug% bot% 7apital appre7iation and
rein8estment o4 t%at appre7iation.
Process of Wealth Management9
ealt% !anagement is t%e art and s7ien7e o4 making de7isions about in8estment mix and poli7., mat7%ing
in8estments to obje7ti8es, asset allo7ation 4or indi8iduals and institutions, and balan7ing risk against per4orman7e.
ealt% management is all about strengt%s, weaknesses, opportunities and t%reats in t%e 7%oi7e o4 debt 8s. eAuit.,
domesti7 8s. international, growt% 8s. sa4et., and man. ot%er tradeo44s en7ountered in t%e attempt to maximi9e
return at a gi8en appetite 4or risk.
15 | P a g e

Wealth management F in8estment consulting G ad8anced planning G relationship management


6igure ,: Pro7ess o4 ealt% !anagement
5%e wealt% management pro7ess is t%e pro7ess an in8estor takes to aid %im in meeting %is in8estment goals.
5%e pro7edure is as 4ollows:
a2 Create a Policy Statement 1A poli7. statement is t%e statement t%at 7ontains t%e in8estorEs goals and
7onstraints as it relates to %is in8estments.
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b2 "e8elop an In8estment Strategy 1 5%is entails 7reating a strateg. t%at 7ombines t%e in8estorEs goals and
obje7ti8es wit% 7urrent 4inan7ial market and e7onomi7 7onditions.
72 Implement the Plan Created 15%is entails putting t%e in8estment strateg. to work, in8esting in a port4olio
t%at meets t%e 7lientEs goals and 7onstraint reAuirements.
d2 Monitor and 'pdate the Plan 1;ot% markets and in8estorsE needs 7%ange as time 7%anges. As su7%, it is
important to monitor 4or t%ese 7%anges as t%e. o77ur and to update t%e plan toadjust 4or t%e 7%anges t%at
%a8e o77urred.
Policy Statement
A poli7. statement is t%e statement t%at 7ontains t%e in8estorEs goals and 7onstraints as it relates to %is
in8estments. 5%is 7ould be 7onsidered to be t%e most important o4 all t%e steps in t%e port4olio management
pro7ess. 5%e statement reAuires t%e in8estor to 7onsider %is true 4inan7ial needs, bot% in t%e s%ort run and t%e long
run. It %elps to guide t%e in8estment port4olio manager in meeting t%e in8estorEs needs. %en t%ere is market
un7ertaint. or t%e in8estorEs needs 7%ange, t%e poli7. statement will %elp to guide t%e in8estor in making t%e
ne7essar. adjustments t%e port4olio in a dis7iplined manner.
"e8eloping In8estment Strategy
#7pressing In8estment &Ejecti8es in Terms of Risk and Return
Return obje7ti8es are important to determine. 5%e. %elp to 4o7us an in8estor on meeting %is 4inan7ial goals and
obje7ti8es. Howe8er, risk must be 7onsidered as well. An in8estor ma. reAuire a %ig% rate o4 return. A %ig% rate o4
return is t.pi7all. a77ompanied b. a %ig%er risk. /espite t%e need 4or a %ig% return, an in8estor ma. be
un7om4ortable wit% t%e risk t%at is atta7%ed to t%at %ig%er return port4olio. As su7%, it is important to 7onsider not
onl. return, but t%e risk o4 t%e in8estor in a poli7. statement.
-actors *ffecting Risk Tolerance
An in8estorEs risk toleran7e 7an be a44e7ted b. man. 4a7tors:
Age1 in8estor ma. %a8e lower risk toleran7e as t%e. get older and 4inan7ial 7onstraints are more pre8alent.
6amil. situation 1 an in8estor ma. %a8e %ig%er in7ome needs i4 t%e. are supporting a 7%ild in 7ollege or an elderl.
relati8e.
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ealt% and in7ome 1 an in8estor ma. %a8e a greater abilit. to in8est in a port4olio i4 %e or s%e %as existing wealt%
or %ig% in7ome.
Ps.7%ologi7al 1 an in8estor ma. simpl. %a8e a lower toleran7e 4or risk based on %is personalit..
Constraints in in8esting as per the Portfolio created9
)iDuidity Constraints : 3iAuidit. 7onstraints identi4. an in8estorEs need 4or liAuidit., or 7as%. 6or example,
wit%in t%e next .ear, an in8estor needs S'),))) 4or t%e pur7%ase o4 a new %ome. 5%e S'),))) would be 7onsidered
a liAuidit. 7onstraint be7ause it needs to be set aside 0be liAuid2 4or t%e in8estor.
Time /oriHon : A time %ori9on 7onstraint de8elops a timeline o4 an in8estorEs 8arious 4inan7ial needs. 5%e time
%ori9on also a44e7ts an in8estorEs abilit. to a77ept risk. I4 an in8estor %as a long time %ori9on, t%e in8estor ma.
%a8e a greater abilit. to a77ept risk be7ause %e would %a8e a longer time period to re7oup an. losses. 5%is is
unlike an in8estor wit% a s%orter time %ori9on w%ose abilit. to a77ept risk ma. be lower be7ause %e would not
%a8e t%e abilit. to re7oup an. losses.
Ta7 Concerns : A4ter1tax returns are t%e returns in8estors are 4o7used on w%en 7reating an in8estment port4olio.
I4 an in8estor is 7urrentl. in a %ig% tax bra7ket as a result o4 %is in7ome, it ma. be important to 4o7us on
in8estments t%at would not make t%e in8estorEs situation worse, like in8esting more %ea8il. in tax1de4erred
in8estments.
)egal and Regulatory : 3egal and regulator. 4a7tors 7an a7t as an in8estment 7onstraint and must be 7onsidered.
An example o4 t%is would o77ur in a trust. A trust 7ould reAuire t%at no more t%an ,)Q o4 t%e trust be distributed
ea7% .ear. 3egal and regulator. 7onstraints su7% as t%is one o4ten 7anEt be 7%anged and must not be o8erlooked.
'niDue Circumstances : An. spe7ial needs or 7onstraints not re7ogni9ed in an. o4 t%e 7onstraints listed abo8e
would 4all in t%is 7ategor.. An example o4 a uniAue 7ir7umstan7e would be t%e 7onstraint an in8estor mig%t pla7e
on in8esting in an. 7ompan. t%at is not so7iall. responsible, su7% as a toba77o 7ompan..
18 | P a g e

Chapter (9 )IT#R*T'R# R#VI#W
2.1 Markowitz Portfolio Theory -
Harr. !arkowit9 de8eloped t%e port4olio model. 5%is model in7ludes not onl. expe7ted return, but also in7ludes
t%e le8el o4 risk 4or a parti7ular return. !arkowit9 assumed t%e 4ollowing about an indi8idualEs in8estment
be%a8iour:
"i8en t%e same le8el o4 expe7ted return, an in8estor will 7%oose t%e in8estment wit% t%e lowest amount o4
risk.
In8estors measure risk in terms o4 an in8estmentEs 8arian7e or standard de8iation.
6or ea7% in8estment, t%e in8estor 7an Auanti4. t%e in8estmentEs expe7ted return and t%e probabilit. o4 t%ose
returns o8er a spe7i4ied time %ori9on.
19 | P a g e

In8estors seek to maximi9e t%eir utilit..
In8estors make de7ision based on an in8estmentEs risk and return, t%ere4ore, an in8estorEs utilit. 7ur8e is
based on risk and return.
The #fficient -rontier
!arkowit9E work on an indi8idualEs in8estment be%a8iour is important not onl. w%en looking at indi8idual
in8estment, but also in t%e 7ontext o4 a port4olio. 5%e risk o4 a port4olio takes into a77ount ea7% in8estmentEs risk
and return as well as t%e in8estmentEs 7orrelation wit% t%e ot%er in8estments in t%e port4olio.
A port4olio is 7onsidered e44i7ient i4 it gi8es t%e in8estor a %ig%er expe7ted return wit% t%e same or lower le8el o4
risk as 7ompared to anot%er in8estment. 5%e e44i7ient 4rontier is simpl. a plot o4 t%ose e44i7ient port4olios, as
illustrated below:

6igure *: :44i7ient 6rontier
20 | P a g e

%ile an e44i7ient 4rontier illustrates ea7% o4 t%e e44i7ient port4olios relati8e to risk and return le8els, ea7% o4 t%e
e44i7ient port4olios ma. not be appropriate 4or e8er. in8estor. Re7all t%at w%en 7reating an in8estment poli7.,
return and risk were t%e ke. obje7ti8es. An in8estorEs risk pro4ile is illustrated wit% indi44eren7e 7ur8es. 5%e
optimal port4olio, t%en, is t%e point on t%e e44i7ient 4rontier t%at is tangential to t%e in8estorEs %ig%est indi44eren7e
7ur8e. See our arti7le: A "uide to Port4olio Constru7tion, 4or some essential steps w%en taking a s.stemati7
approa7% to 7onstru7ting a port4olio.
2.2 Michael F. Hanford, Chief Methodoloist, !"MM#T $scendant Methodoloies-
A good wa. to begin understanding w%at port4olio management is 0and is not2 ma. be to de4ine t%e term port4olio.
In a business 7ontext, we 7an look to t%e mutual 4und industr. to explain t%e termEs origins. !organ
Stanle.Es /i7tionar. o4 6inan7ial 5erms o44ers t%e 4ollowing explanation:
I4 .ou own more t%an one se7urit., .ou %a8e an in8estment port4olio. Tou build t%e port4olio b. bu.ing additional
sto7ks, bonds, mutual 4unds, or ot%er in8estments. Tour goal is to in7rease t%e port4olioEs 8alue b. sele7ting
in8estments t%at .ou belie8e will go up in pri7e.
A77ording to modern port4olio t%eor., .ou 7an redu7e .our in8estment risk b. 7reating a di8ersi4ied port4olio t%at
in7ludes enoug% di44erent t.pes, or 7lasses, o4 se7urities so t%at at least some o4 t%em ma. produ7e strong returns
in an. e7onomi7 7limate.
#ote t%at t%is explanation 7ontains a number o4 important ideas:
A port4olio 7ontains man. in8estment 8e%i7les.
Lwning a port4olio in8ol8es making 7%oi7es 11 t%at is, de7iding w%at additional sto7ks, bonds, or ot%er
4inan7ial instruments to bu.R w%en to bu.R w%at and w%en to sellR and so 4ort%. !aking su7% de7isions is
a 4orm o4 management.
5%e management o4 a port4olio is goal1dri8en. 6or an in8estment port4olio, t%e spe7i4i7 goal is to
in7rease t%e 8alue.
!anaging a port4olio in8ol8es in%erent risks.
L8er time, ot%er industr. se7tors %a8e adapted and applied t%ese ideas to ot%er t.pes o4 Uin8estments,U in7luding
t%e 4ollowing:
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*pplication portfolio management9 5%is re4ers to t%e pra7ti7e o4 managing an entire group or major subset o4
so4tware appli7ations wit%in a port4olio. Lrgani9ations regard t%ese appli7ations as in8estments be7ause t%e.
reAuire de8elopment 0or a7Auisition2 7osts and in7ur 7ontinuing maintenan7e 7osts. Also, organi9ations must
7onstantl. make 4inan7ial de7isions about new and existing so4tware appli7ations, in7luding w%et%er to in8est in
modi4.ing t%em, w%et%er to bu. additional appli7ations, and w%en to UsellU 11 t%at is, retire 11 an obsolete so4tware
appli7ation.
Product portfolio management9 ;usinesses group major produ7ts t%at t%e. de8elop and sell into 0logi7al2
port4olios, organi9ed b. major line1o41business or business segment. Su7% port4olios reAuire ongoing management
de7isions about w%at new produ7ts to de8elop 0to di8ersi4. in8estments and in8estment risk2 and w%at existing
produ7ts to trans4orm or retire 0i.e., spin o44 or di8est2.
Proje7t or initiati8e port4olio management: An initiati8e, in t%e simplest sense, is a bod. o4 work wit%:
A spe7i4i7 0and limited2 7olle7tion o4 needed results or work produ7ts.
A group o4 people w%o are responsible 4or exe7uting t%e initiati8e and use resour7es, su7% as 4unding.
A de4ined beginning and end.
!anagers 7an group a number o4 initiati8es into a port4olio t%at supports a business segment, produ7t, or produ7t
line. 5%ese e44orts are goal1dri8enR t%at is, t%e. support major goals andGor 7omponents o4 t%e enterpriseEs business
strateg.. !anagers must 7ontinuall. 7%oose among 7ompeting initiati8es 0i.e., manage t%e organi9ationEs
in8estments2, sele7ting t%ose t%at best support and enable di8erse business goals 0i.e., t%e. di8ersi4. in8estment
risk2. 5%e. must also manage t%eir in8estments b. pro8iding 7ontinuing o8ersig%t and de7ision1making about
w%i7% initiati8es to undertake, w%i7% to 7ontinue, and w%i7% to reje7t or dis7ontinue.
5%e arti7le 4o7uses primaril. on initiati8e port4olio management. 3etEs begin b. looking at %ow most businesses
de7ide w%at initiati8es to 4und and pursue.
:nterprise business strateg.: 5%e starting point
6or man. .ears, businesses %a8e de4ined and used pro7esses to 7reate and Auali4. goals t%e. must a7%ie8e in order
to prosper wit%in a spe7i4i7 time period. 5%ese goals mig%t in7lude pro8isions to:
Impro8e re8enue o8erall or wit%in a spe7i4i7 business segment.
Create, re4ine, or retire produ7ts.
Impro8e t%e 7urrent 7ost stru7ture or mix.
"ain additional market s%are.
22 | P a g e

/e4initions o4 business goals ma. also spe7i4. a7%ie8ement metri7s, su7% as: Uimpro8e o8erall re8enue b. 4i8e
per7ent wit%in t%e next two .earsU or Uimpro8e t%e 7ost stru7ture 8ia a 4i8e per7ent redu7tion in labor 7osts wit%in
t%e next .ear.U
!anagers t.pi7all. re7ord t%ese goals and metri7s, along wit% t%eir e8ol8ing understanding o4 t%em, in an
enterprise business strateg. do7ument. 5%is do7ument also spells out results t%e business must a7%ie8e in order to
prosper.
As an enterprise 7onstru7ts, dis7usses, and re4ines a business strateg., its 4o7us s%i4ts 4rom answering t%e Auestion:
U%at goals and related spe7i4i7s must we a7%ie8eVU to answering t%e 4ollow1on Auestion: U%at me7%anisms will
we 7reate and implement to rea7% t%ese goalsVU
Lne su7% me7%anism is an initiati8e. As we noted abo8e, an initiati8e is a me7%anism businesses use to bot%
4rame and dri8e e44orts toward a7%ie8ing stated goals 0or goal 7omponents2 in t%e enterprise business strateg. 11
w%i7% s%ould alwa.s ser8e as a starting point and 7ontinuing sour7e o4 re4eren7e.
*long the path to Eusiness success
So 4ar, we %a8e de4ined a logi7al, simple progression o4 e44orts to a7%ie8e su77ess as a business entit.:
Identi4. business goals.
Wuali4. and Auanti4. t%e business goals.
/e4ine initiati8es to enable and a7%ie8e t%e business goals.
Choosing among competing initiati8es
Initiati8es ma. arise 4rom 8arious sour7es wit%in an organi9ation or enterprise, in7luding businesses or business
segments t%at intend to 7ontribute dire7tl. to t%e enterprise business strateg.. 5%e stimulus 4or an initiati8e ma. be
eit%er internal or externalR it mig%t be a 7lient reAuest to 7%ange an existing produ7t or a new regulation imposed
b.
an industr. bod.. In addition, initiati8es ma. be responses to 7%anging 7onditions or needs wit%in t%e
organi9ation, su7% as t%e introdu7tion o4 new te7%nologies or t%e re1organi9ation o4 a business unit.
:nterprises need a pro7ess to %elp t%em make sense o4 t%ese 7ompeting demands, relate t%em to enterprise
business strateg. goals and goal 7omponents, and mat7% t%em wit% t%e 4inite resour7es 11 o4 all t.pes 11 t%at are
a8ailable.
In one organi9ation I know o4, t%e CIL learned t%at a 7ompeting organi9ationEs I5 group was on a pat% to impro8e
so4tware deli8er. 7apabilit.. 5%at organi9ationEs CIL was implementing pro7ess impro8ement b. means o4 t%e
23 | P a g e

0t%en 7urrent2 So4tware C!! model 0SC!!2, and %ad set a twent.14our1Xmont% 0t.pi7al industr.
per4orman7e2 deadline 4or a7%ie8ing t%e next le8el.
/etermined not to be beaten, t%e 4irst CIL 7alled in %is dire7t reports and issued a mandate: His I5 organi9ation
would a7%ie8e 3e8el * 7apabilit. in twel8e mont%s. 5o a7%ie8e t%is goal, managers would %a8e to eit%er de4er or
slow down %ig%1priorit. so4tware proje7ts. 5%is did represent a 7%oi7e among 7ompeting priorities, but t%e options
were based solel. upon t%e CILEs per7eption o4 importan7e and worked poorl. 4or t%e organi9ation. 5%e
organi9ationEs major so4tware proje7ts 11 w%i7% were aligned wit% important 7omponents o4 t%e enterprise business
strateg. 11 lost resour7es, %ad to per4orm additional work, and were subje7t to man. additional 7apabilit. re8iews.
In t%e end, alt%oug% t%e I5 organi9ation did a7%ie8e t%e next 7apabilit. maturit. le8el in twel8e mont%s, it lost
7redibilit. wit% internal 7ustomers be7ause it 4ailed to 7arr. out urgentl. needed proje7ts on s7%edule, and as
planned.
*ssessing initiati8es
5o understand w%i7% new initiati8es to pursue 11 and w%i7% existing initiati8es to 7ontinue pursuing 11 enterprises
must 7ondu7t s.stemati7 assessments, using t%e set o4 goals, goal 7omponents, and a7%ie8ement metri7s in t%e
enterprise business strateg. as major re4eren7e points.
6rom a basi7 0and 8astl. o8erl. simplisti72 perspe7ti8e, initiati8es t%at 7ontribute to a spe7i4i7 goal, goal
7omponent, or a7%ie8ement metri7 are UgoodUR all ot%ers are Uless t%an good.U L4 7ourse, in pra7ti7e, making t%e
judgment is t.pi7all. not t%at simple.
5o re8iew bot% potential new initiati8es and 0periodi7all.2 ea7% existing initiati8e e44e7ti8el., t%e enterprise needs
to 7ompare t%e initiati8e against an agreed1upon set o4 measures t%at Auanti4., in multiple dimensions, its U8alueU
7ontribution. In ot%er words, t%is 7omposite metri7 measures t%e initiati8eEs potential support 4or a goal or goal
7omponent in t%e enterprise business strateg..
Checking for links to the Eusiness strategy
An enterprise business strateg. addresses se8eral business areas and t%eir asso7iated goals. So t%e strateg. is
reall. a 7olle7tion o4 related items, ea7% supported or enabled b. goals, goal 7omponents, me7%anisms, proposed
7%anges and trans4ormations, and multiple initiati8es. "i8en t%is 7omplexit., it 7an be 7%allenging 4or t%e
organi9ation to de8ise an e44e7ti8e re8iew pro7ess to 7ontinuousl. assess and 7on4irm t%at bot% proposed and
existing initiati8es are 4irml. atta7%ed to spe7i4i7 0and e8ol8ing2 enterprise business strateg. goals or goal
7omponents.
6or example, one organi9ation I know o4 was reAuired 0as a matter o4 business pra7ti7e2 to modi4. its 7ore set o4
appli7ation so4tware s.stems ea7% .ear to a77ommodate its 7ustomersE new and 7%anging business reAuirements.
A7%ie8ing t%is goal was 7ru7ial to t%e 7ompan.Es 7ontinuing business su77ess. Some o4 its 7ompetitors were
alread. doing t%e same t%ing, more su77ess4ull.. A77ordingl., t%e organi9ation began gi8ing initiati8es linked to
t%is goal top priorit. in terms o4 4unding and resour7es 11 in ot%er words, 7lassi4.ing t%em as UgoodU initiati8es.
24 | P a g e

#ot surprisingl., soon more t%an %al4 o4 all appro8ed initiati8es appeared to be linked to t%is business goal.
Howe8er, upon 7lose s7rutin., man. o4 t%em were a7tuall. aimed at 4illing ot%er needs. 5%ose w%o proposed t%ese
initiati8es
simpl. reali9ed t%at linking t%em to t%e annual 7ustomer 7%ange reAuirements pro7ess was 0almost2 a blank 7%e7k
4or appro8al, 4unding, and resour7es. :8en worse, some initiati8es t%e 7ompan. a7tuall. needed to support
7ustomer 7%anges were denied be7ause t%eir proposals did not su44i7ientl. emp%asi9e t%e link.
*pportioning resources
Alt%oug% an organi9ation s%ould do e8er.t%ing in its power to 7reate and exe7ute an e44e7ti8e enterprise business
strateg., it must also re7ogni9e t%at its resour7es 11 sta44, outside 7onsultants and 7ontra7tors, in4rastru7ture,
7apital, and %uman expertise 11 are 4inite. Competing needs wit%in t%e business will redu7e t%e s%are o4 resour7es
a8ailable to a7%ie8e strategi7 goalsR so it is important to Auanti4. t%eir relati8e importan7e and de4ine ben7%marks
4or apportioning t%ese resour7es.
In addition, organi9ations need a d.nami7 measurement me7%anism to pro8ide 11 at multiple inter8als and points
11 a snaps%ot o4 t%e resour7es ea7% initiati8e is 7onsuming. 5o be 4air, t%ese measures s%ould 7onsider t%e
initiati8esE linkages to 8arious goals and goals 7omponents, w%i7% in turn s%ould be ranked b. priorit..
Pro8iding control and o8ersight
Suppose an organi9ation 7ould identi4. a single group o4 enabling me7%anisms and initiati8es at t%e time it re4ines
and 7ompletes its enterprise business strateg.. And 4urt%er suppose t%e organi9ation t%en pro7eeded to exe7ute
t%at group o4 me7%anisms and initiati8es su77ess4ull., wit%out an. 7%anges. In su7% a 7ase, t%e organi9ation 7ould
use a simple progress 7%e7klist to exer7ise 7ontrol o8er t%e me7%anisms and initiati8es.
+n4ortunatel., t%ings do not work t%is wa. in real organi9ations. As we noted abo8e, at an. point in time, some
initiati8es are in progress, proposals 4or new initiati8es are being 7onsidered, and t%e business en8ironment is
subje7t to 7onstant 7%anges, w%i7% %a8e 8ar.ing degrees o4 impa7t upon t%e organi9ation and its initiati8es. In t%is
7omplex, 4luid en8ironment, pro8iding an appropriate measure o4 o8ersig%t and 7ontrol 7an be a major 7%allenge.
Lne organi9ation I know o4 4ull. embra7ed t%e idea o4 o8ersig%t and 7ontrol 11 per%aps too ent%usiasti7all.. :8er.
proposed new initiati8e reAuired appro8al b. multiple organi9ational entities, and t%e pro7ess in8ol8ed multiple
re8iew1and1appro8al Ue8ents.U :8entuall., t%e a7ti8it. o4 preparing business 7ases and justi4i7ation models
be7ame an end in itsel4 4or t%e teams proposing t%ese initiati8esR t%e. de8oted weeks o4 e44ort to it, and t%eir
presentations 7onsumed %ours o4 managersE time. +n4ortunatel., t%at le4t little time 4or t%e managers 0and teams2
to in8estigate
w%at t%e proposed initiati8e was reall. about, and appro8al was t.pi7all. granted to initiati8es wit% t%e most
7reati8e, 7olor4ul presentations and 4inan7ial models. 3ater, as t%e dis7o8er. pro7ess un7o8ered t%e unexpe7ted,
t%is led to a disrupti8e, expensi8e 7%urn o4 7ontents and dire7tion.
25 | P a g e

Basic concepts and components for portfolio management
The portfolio
6irst, we 7an now introdu7e a de4inition o4 portfolio t%at relates more dire7tl. to t%e 7ontext o4 our pre7eding
dis7ussion. In t%e I;! 8iew, a port4olio is: one o4 a number o4 me7%anisms, 7onstru7ted to a7tuali9e signi4i7ant
elements in t%e :nterprise ;usiness Strateg..
It 7ontains a sele7ted, appro8ed, and 7ontinuousl. e8ol8ing, 7olle7tion o4 Initiati8es w%i7% are aligned wit% t%e
organi9ing element o4 t%e Port4olio, and, w%i7% 7ontribute to t%e a7%ie8ement o4 goals or goal 7omponents
identi4ied in t%e :nterprise ;usiness Strateg..
5%e basis 4or 7onstru7ting a port4olio s%ould re4le7t t%e enterpriseEs parti7ular needs. 6or example, .ou mig%t
7%oose to build a port4olio around initiati8es 4or a spe7i4i7 produ7t, business segment, or separate business unit
wit%in a multinational organi9ation.
The portfolio structure
As we noted earlier, a port4olio stru7ture identi4ies and 7ontains a number o4 port4olios. 5%is stru7ture, like t%e
port4olios wit%in it, s%ould align wit% signi4i7ant planning and results boundaries, and wit% business 7omponents.
I4 .ou %a8e a produ7t1oriented port4olio stru7ture, 4or example, t%en .ou would %a8e a separate port4olio 4or ea7%
major produ7t or produ7t group. :a7% port4olio would 7ontain all t%e initiati8es t%at %elp t%at parti7ular produ7t or
produ7t group 7ontribute to t%e su77ess o4 t%e enterprise business strateg..
The portfolio manager
5%is is a new role 4or organi9ations t%at embra7e a port4olio management approa7%. A port4olio manager is
responsible 4or 7ontinuing o8ersig%t o4 t%e 7ontents wit%in a port4olio. I4 .ou %a8e se8eral port4olios wit%in .our
port4olio stru7ture, t%en .ou will likel. need a port4olio manager 4or ea7% one. 5%e exa7t range o4 responsibilities
0and aut%orit.2 will 8ar. 4rom one organi9ation to anot%er, but t%e basi7s are as 4ollows:
Lne port4olio manager o8ersees one port4olio.
5%e port4olio manager pro8ides da.1to1da. o8ersig%t.
5%e port4olio manager periodi7all. re8iews t%e per4orman7e o4, and 7on4orman7e to expe7tations 4or,
initiati8es wit%in t%e port4olio.
5%e port4olio manager ensures t%at data is 7olle7ted and anal.9ed about ea7% o4 t%e initiati8es in t%e
port4olio.
5%e port4olio manager enables periodi7 de7ision making about t%e 4uture dire7tion o4 indi8idual
initiati8es.
26 | P a g e

Portfolio re8ie=s and decision making
As initiati8es are exe7uted, t%e organi9ation s%ould 7ondu7t periodi7 re8iews o4 a7tual 08ersus planned2
per4orman7e and 7on4orman7e to original expe7tations.
5.pi7all., organi9ation managers spe7i4. t%e 4reAuen7. and 7ontents 4or t%ese periodi7 re8iews, and indi8idual
port4olio managers o8ersee t%eir planning and exe7ution. 5%e re8iews s%ould be multi1dimensional, in7luding
bot% ta7ti7al elements 0e.g., ad%eren7e to plan, budget, and resour7e allo7ation2 and strategi7 elements 0e.g.,
support 4or business strateg. goals and deli8er. o4 expe7ted organi9ational bene4its2.
A signi4i7ant aspe7t o4 o8ersig%t is setting multiple de7ision points 4or ea7% initiati8e, so t%at managers 7an
periodi7all. e8aluate data and de7ide w%et%er to 7ontinue t%e work. 5%ese U7ontinueG7%angeGdis7ontinueU
de7isions s%ould be dri8en b. an understanding 0de8eloped 8ia t%e periodi7 re8iews2 o4 a gi8en initiati8eEs
7ontinuing 8alue, expe7ted bene4its, and strategi7 7ontribution. !aking t%ese de7isions at multiple points in t%e
initiati8eEs li4e7.7le %elps to ensure t%at managers will 7ontinuall. examine and assess 7%anging internal and
external 7ir7umstan7es, needs, and per4orman7e.
0o8ernance
Implementing port4olio management pra7ti7es in an organi9ation is a trans4ormation e44ort t%at t.pi7all. in8ol8es
de8eloping new 7apabilities to address new work e44orts, de4ining 0and 4illing2 new roles to identi4. port4olios
07olle7tions o4 work to be done2, and delineating boundaries among work e44orts and 7olle7tions.
Implementing port4olio management also reAuires 7reating a stru7ture to pro8ide planning, 7ontinuing dire7tion,
and o8ersig%t and 7ontrol 4or all port4olios and t%e initiati8es t%e. en7ompass. 5%at is w%ere t%e notion
o4 governance 7omes into pla.. 5%e I;! 8iew o4 go8ernan7e is:
An abstra7t, 7olle7ti8e term t%at de4ines and 7ontains a 4ramework 4or organi9ation, exer7ise o4 7ontrol and
o8ersig%t, and de7ision1making aut%orit., and wit%in w%i7% a7tions and a7ti8ities are legitimatel. and properl.
exe7utedR toget%er wit% t%e de4inition o4 t%e 4un7tions, t%e roles, and t%e responsibilities o4 t%ose w%o exer7ise t%is
o8ersig%t and de7ision1making.
Port4olio management go8ernan7e in8ol8es multiple dimensions, in7luding:
/e4ining and maintaining an enterprise business strateg..
/e4ining and maintaining a port4olio stru7ture 7ontaining all o4 t%e organi9ationEs initiati8es 0programs,
proje7ts, et7.2.
Re8iewing and appro8ing business 7ases t%at propose t%e 7reation o4 new initiati8es.
Pro8iding o8ersig%t, 7ontrol, and de7ision1making 4or all ongoing initiati8es.
27 | P a g e

Lwners%ip o4 port4olios and t%eir 7ontents.
:a7% o4 t%ese dimensions reAuires an owner 11 eit%er an indi8idual or a 7olle7ti8e 11 to de8elop and appro8e plans,
7ontinuousl. adjust dire7tion, and exer7ise 7ontrol t%roug% periodi7 assessment and re8iew o4 7on4orman7e to
expe7tations.
A good go8ernan7e stru7ture de7omposes bot% t%e t.pes o4 work and t%e aut%orit. to plan and o8ersee work. It
de4ines indi8idual and 7olle7ti8e roles, and links t%em to an aut%orit. s7%eme. Poli7ies t%at are 7olle7ti8el.
de8eloped and agreed upon pro8ide a 4ramework 4or t%e exer7ise o4 go8ernan7e.
5%e 7omplexities o4 go8ernan7e stru7tures extend well be.ond t%e s7ope o4 t%is arti7le. !an. organi9ations turn
to experts 4or %elp in t%is area be7ause it is so 7riti7al to t%e su77ess o4 an. business trans4ormation e44ort t%at
en7ompasses port4olio management. 6or now, su44i7e it to sa. t%at it is wort% in8esting time and e44ort to 7reate a
sound and 4lexible go8ernan7e stru7ture be4ore .ou attempt to implement port4olio management pra7ti7es.
Portfolio management essentials
:8er. pra7ti7al dis7ipline is based on a 7olle7tion o4 4undamental 7on7epts t%at people %a8e identi4ied and pro8en
0and sometimes re4ined or dis7arded2 t%roug% 7ontinuous appli7ation. 5%ese 7on7epts are use4ul until t%e. be7ome
obsolete, supplanted b. newer and more e44e7ti8e ideas.
6or example, in Roman times, engineers dis7o8ered t%at i4 t%e upstream supports o4 a bridge were s%aped to o44er
little resistan7e to t%e 7urrent o4 a stream or ri8er, t%e. would last longer. 5%e. applied t%is prin7iple all a7ross t%e
Roman :mpire. 5%en, in t%e !iddle Ages, engineers dis7o8ered t%at su7% supports would last even longer i4
t%eir downstream side was also s%aped to o44er little resistan7e to t%e 7urrent. So t%at be7ame t%e new standard 4or
bridge 7onstru7tion.
Port4olio management, like bridge1building, is a dis7ipline, and a number o4 aut%ors and pra7titioners %a8e
do7umented 4undamental ideas about its exer7ise. Re7entl., based on our experien7es wit% 7lients w%o %a8e
implemented port4olio management pra7ti7es and on our resear7% into t%e dis7ipline, we %a8e started to s%ape an
I;! 8iew o4 4undamental ideas around port4olio management. e are beginning to express t%is 8iew as a
7olle7tion o4 UessentialsU t%at are, in turn, grouped around a small 7olle7tion o4 port4olio management t%emes.
6or example, one o4 t%ese t%emes is initiative value contribution. It suggests t%at t%e 8alue o4 an initiati8e 0i.e., a
program or proje7t2 s%ould be estimated and appro8ed in order to start work, and t%en assessed periodi7all. on t%e
basis o4 t%e initiati8eEs 7ontribution to t%e goals and goal 7omponents in t%e enterprise business strateg.. 5%ese
assessments determine 0in part2 w%et%er t%e initiati8e warrants 7ontinued support.
5%is t%eme en7ompasses t%e notion t%at initiative value changes over time. %en an initiati8e is in t%e proposal
stage, it is possible to Auanti4. an anti7ipated 8alue 7ontribution. Ln t%is basis 0in part2 t%e proposed initiati8e
be7omes an appro8ed initiati8e. ;ut w%at about an initiati8e t%at is a large program e44ort, wit% a two1.ear
durationV It is %ig%l. unlikel. t%at t%e programEs expe7ted 8alue will remain stati7 during t%e entire two1.ear
period, so 7ontinuous 8alue monitoring is ne7essar.. 6rom t%is, we 7an deri8e an essential statement:
Initiative value changes and requires continuous monitoring over the life of the initiative.
28 | P a g e

2.% Paul &. 'ruler, Carlos M. Chan-$l(itres, 'ir(y ). Pickett, *oer &. !+ith, #llya ,. Hicks,
*ichard M.Feld+an, !eriy -utenko, .on Hun 'an, and !eth .. /uike+a fro+ The Te0as $1M
"ni2ersity !yste+-
*sset management concepts9
Asset management is an emerging e44ort to integrate 4inan7e, planning, engineering, personnel, and in4ormation
management to assist agen7ies in managing assets 7ost1e44e7ti8el.. In its broadest sense, asset management is
de4ined as Na s.stemati7 pro7ess o4 maintaining, upgrading, and operating assets, 7ombining engineering
prin7iples wit% sound business pra7ti7e and e7onomi7 rationale, and pro8iding tools to 4a7ilitate a more organi9ed
and 4lexible approa7% to making t%e de7isions ne7essar. to a7%ie8e t%e publi7Fs expe7tationsO . 5%e main
obje7ti8e o4 asset management is to impro8e de7ision1making pro7esses 4or allo7ating 4unds among an agen7.Fs
assets so t%at t%e best
return on in8estment is obtained. 5o a7%ie8e t%is obje7ti8e, asset management embra7es all o4 t%e pro7esses, tools,
and data reAuired to manage assets e44e7ti8el.. 6or t%is reason asset management is also de4ined as Na pro7ess o4
resour7e allo7ation and utili9ationO. 5%e 4ramework needed to 7arr. out t%is pro7ess e44e7ti8el. en7ompasses an
agen7.Fs poli7. goals and obje7ti8es, per4orman7e measurements, planning and programming, program deli8er.,
and s.stem monitoring and per4orman7e results.
29 | P a g e

6igure (: Resour7e Allo7ation and +tili9ation Pro7ess in Asset !anagement
Asset management de7isions are based on poli7. goals and obje7ti8es. 5%e agen7. establis%es poli7. goals and
obje7ti8es to re4le7t t%e desired s.stem 7ondition and target le8el o4 ser8i7e. Per4orman7e measures are sele7ted to
express t%e desired s.stem 7ondition and target le8el o4 ser8i7e in an obje7ti8e manner, and to allow tra7king o4
progress toward desired goals. Planning and programming are 7omplex pro7esses sin7e t%e agen7. manages
se8eral t.pes o4 p%.si7al in4rastru7ture 4a7ilities. A stru7tured asset management s.stem s%ould pro8ide
in4ormation about t%e e44e7ts o4 in8esting di44erent le8els o4 4unding in ea7% o4 t%ese 8arious t.pes o4 4a7ilities and
t%e e44e7ts o4 in8esting more in one t.pe w%ile in8esting less in anot%er.
2.3 $nita -hoir and MC /o2ardhana *anan, The &cono+ic Ti+es 4$5ril 3, 26127
%en Romes% Sobti signed up to lead HindujasE IndusInd ;ank in *))?, not a single sto7k anal.st t%oug%t it
wort% 7o8ering. 6our .ears %en7e, more t%an ,') do. "oldman Sa7%s "roup and JP !organ %a8e top ratings on it.
5empleton, $anguard and ;la7kstone are among stake owners.
It was not just in8estors w%o %ad a dim 8iew o4 t%e bank run b. a 4amil. embroiled in t%e ;o4ors arms
pro7urement s7andal o4 t%e ?)s, but e8en t%e regulator %ad gi8en up %ope terming it an EoutlierE.
30 | P a g e

Chapter +9 T*S, "#-I!ITI&!
+% Introduction to the research9
8To co+e u5 with creatin the (est 5ossi(le 5ortfolio of the (ank client in accordance with all the factors and
constraints9
IndusInd bank being a new era bank %as a lot o4 H# 7ustomers. :a7% one o4 t%em %as a di44erent need, priorit.,
liabilit. and 7onstraint. Also in India, t%e 7on7ept o4 wealth management is not t%at 4amousG understood.
!oreo8er, people donFt e8en understand t%e 7on7ept o4 mutual 4unds, insuran7e et7. So itFs a di44i7ult task to
make t%em understand and agree to t%e 7on7ept and pro7ess o4 wealt% management. Also, t%e banca managers,
use di44erent 7al7ulators to 7al7ulate 8arious 7omponents like Human li8e 8alue, appropriate amount o4 premiumsG
taxes pa.able, insuran7e 7o8erage reAuirements et7. ;ut t%e bank doesnFt %a8e its own single 7al7ulator 4or t%is
purpose. It usuall. uses t%e 7al7ulators pro8ided b. its tie1up 7ompanies. So t%e 7lients o4ten %a8e in%ibitions to
take wealt% management de7isions 4rom t%e bank. So i4 t%e wealt% managers are pro8ided wit% a 7al7ulator t%oug%
4or t%eir internal purpose onl., t%e. 7an easil. get t%e 7on4iden7e o4 t%e 7lient.
+( Banking Sector in Wealth Management9
:arlier, banking onl. meant depositing and wit%drawing o4 7as%, taking loans, trading et7, in s%ort it was
7onsidered to be oneFs own pigg. bank but o4 a bigger si9e. ;ut wit% t%e 7%anging trends and 7ustomer
expe7tations, t%e banks are not onl. dealing wit% t%e a4oresaid duties but are also assisting t%e 7lients to manage
t%eir assets in a better approa7%. 5%e banks are now dealing wit% t%ose duties w%i7% earlier were per4ormed b.
onl. t%e asset managing 7ompanies, insuran7e 7ompanies, mutual 4und 7ompanies et7.
#ow, wit% t%e banks dealing wit% bot% t%e perspe7ti8e, t%e 7ustomers %a8e more options to 7%oose and t%e. easil.
go wit% t%e banks as t%e. %a8e more trust in it.
++ Current state of Wealth Management in India9
ealt% management is just emerging in India. 5%e growt% o4 t%e e7onom. %as alread. been widel. s%ow7ased.
ealt% management ser8i7es %a8e been getting more attention o8er t%e last two .ears. A booming e7onom.,
rising sto7k pri7es and an in7rease in salaries and spending power %a8e turned t%e spotlig%t on t%is se7tor. 5%e
wealt% management spa7e was earlier t%e preser8e o4 some 4oreign banks w%i7% o44ered t%ese Uex7lusi8e ser8i7esU
to a sele7t 4ew. 5%is was not a ser8i7e .ou 7ould appl. 4or. 5%e unsaid tagline was U/onEt 7all us. eEll 7all .ou 0i4
.ou are t%at wealt%.P2.U 5oda., a number o4 pri8ate banks o44er t%is ser8i7e. Also entering t%is arena and 7ar8ing a
31 | P a g e

ni7%e 4or t%emsel8es are standalone entities t%at o44er t%e 4ull range o4 ser8i7es Y in8estment ad8i7e, port4olio
management, taxation ad8i7e et al. A new report 4rom independent market anal.st /ata monitor 0/5!.32 re8eals
t%e Indian wealt% market is o44ering 7ompetitors enormous opportunities. In t%e last 4i8e .ears, a44luent wealt% in
India %as grown at a rate o4 ,<.-Q wit% a44luent indi8iduals totalling -,?,))) at t%e end o4 *))<. IndiaFs large
skilled population and robust domesti7 sto7k market will ensure t%at t%is wealt% 7ontinues to grow to almost one
million indi8iduals, wit% a 7olle7ti8e wealt% o4 o8er +S S *))bn b. *),*. UIndia %as its own merits as one o4 t%e
de8eloping ;RIC e7onomies 0;ra9il, Russia, India and C%ina2. Competitors are realising t%is 4a7t and are
beginning to bring t%eir propositions to t%e table. 5oda., India is attra7ting bot% 4oreign wealt% managers and
domesti7 banks to set up wealt% management businesses. "oing 4orward t%is is a trend t%at is likel. to 7ontinue,U
sa.s Alan S%ields, /ata monitor 4inan7ial ser8i7es anal.st and aut%or o4 t%e stud.. 5%e number o4 mass a44luent
indi8iduals in India %as more t%an doubled sin7e ,@@?. India is be7oming an in7reasingl. attra7ti8e market in
man. industries, and wealt% management is no ex7eption. /ri8ing t%e attra7ti8eness o4 t%e market %as been t%e
7ountr.Fs ex7eptional e7onomi7 per4orman7e o8er t%e last de7ade. 5%e e7onom. %as grown at an a8erage o4 <.-Q
sin7e ,@@=, due to t%e 7ontinued de8elopment o4 t%e ser8i7e industr. and strong growt% in t%e te7%nolog. se7tor.
5%e opportunities t%at %a8e been 7reated b. a booming e7onom. %a8e in turn dri8en indi8idual wealt% growt%.
5%e wealt% o4 IndiaFs residents %as grown 4rom+SS<@bn in ,@@? to +SS,<<bn at t%e end o4 *))?. 5%is amounts
to an in7rease o4 ,*(Q in just 4i8e .ears. L4 IndiaFs ,., billion populations, wealt% is 7on7entrated among a
-,?,))) indi8iduals. L4 t%e total indi8idual wealt% in India, more t%an -'Qor +S S ,,-bn is owned b. bot% mass
a44luent and %ig% net wort% indi8iduals. Combined, t%is amount o4 wealt% in t%e %ands o4 just -,?))) indi8iduals.
5%ose wit% more t%an +SS(m in liAuid wealt% represented t%e most 8aluable sub1segment o4 t%e wealt% market in
India at .ear1end *))(, owning +S/,<bn. 5%e band a77ounted 4or o8er @Q o4 total sa8ings and in8estments
despite onl. a77ounting 4or onl. a tin. per7entage o4 t%e adult population.
M*I&R W#*)T/ M*!*0#M#!T *0#!CI#S I! I!"I*9
Asso7iation o4 !utual 6unds in India.
A;#1A!RL ;ank,
3otus India Asset !anagement.
Relian7e Capital Asset !anagement.
Axis Asset !anagement Compan. 3td.
S;I 6unds !anagement
!ax #ew Tork Insuran7e
Kotak !a%indra "roup
Centurion ;ank o4 Punjab
ICICI ;ank
32 | P a g e

;irla Sun 3i4e Insuran7e
Standard C%artered Asset !anagement
Prudential ICICI Asset !anagement
ICICI Prudential 3i4e Insuran7e
H/6C Asset !anagement Co. 3td.
ICICI Prudential Asset !anagement Co. 3td.
6ranklin 5empleton Asset !anagement 0India2 P8t. 3td.
;irla Sun 3i4e Asset !anagement Co. 3td.
Sundaram ;#P Paribas Asset !anagement Co. 3td.
5ata Asset !anagement 3td.
/SP ;la7kRo7k In8estment !anagers P8t. 3td.
Religare !a7Auarie Pri8ate ealt%
Credit Suisse
Kar8. Pri8ate ealt%
Centrum Capital
Ro.al ;ank o4 S7otland
;ar7la.s ealt%
+. IndusInd Eank in Wealth Management Sector:
5%e bank %as man. wealt% management produ7ts 4or t%e 7lients. ;ut t%e produ7ts are not o4 its own. 5%e bank
uses t%e produ7ts o4 ot%er banksG7ompanies to pro8ide t%ese ser8i7es. 5%e bank %as tie1ups wit% man.
7ompanies like A8i8a 3i4e Insuran7e, H/6C !utual 6unds and C%ola !andalam "roup to pro8ide t%ese
produ7ts and ser8i7es.
33 | P a g e

5%e major 4inan7ial instruments it deals wit% are:
,. In8estments
*. Insuran7e
I!V#STM#!TS
IndusInd ;ank o44ers .ou personalised in8estment options to %elp a7%ie8e .our 4inan7ial obje7ti8es.
Solutions are tailor1made to suit ea7% indi8idualEs reAuirements. It o44ers a %ost o4 4inan7ial instruments t%at
in7ludes:
aA #:Trading9
IndusInd ;ank o44ers 7ustomers a uniAue (1in1, proposition 4or e1trading in Indian 7apital markets.
5%is proposition allows t%e 7ustomer to le8erage %is IndusInd sa8ings > de1mat a77ount 4or trading
purposes. 5%e bank 4a7ilitates t%e opening o4 trading a77ount wit% t%eir broking partner Kotak
Se7urities w%o %as a 7utting edge on trading solutionsG ser8i7es at best pri7ing in t%e industr..
/o= it =orks9
5%e bank o44ers (1in1, plat4orm w%i7% seamlessl. integrates t%e 7lients Sa8ings, /e1mat > 5rading
a77ounts. As a part o4 (1in1, o44ering t%e 7lient is pro8ided trading 4un7tionalit. > a77ess to world
7lass ad8isor.Gresear7% b. t%eir broking partner0s2.5%e sa8ings and trading a77ounts will be
automati7all. integrated wit% t%e trading a77ount and enable t%e 7lient to trade %assle 4ree.
/o= to get a +:in:% account9
I4 t%e 7lient is new and needs to open a 4res% (1in1, a77ount, t%e ser8i7e exe7uti8es present in t%e
bank would do t%at a4ter doing t%e 4ormalities reAuired and i4 t%e 7ustomer alread. %as an a77ount
t%en t%e existing a77ount 7an be used.
34 | P a g e

EA Bonds9
5%e bank o44ers two t.pes o4 bonds: "LI sa8ings bonds and Capital "ain ;onds.
0&I Sa8ings Bonds9
"LI Sa8ings ;onds are instruments t%at are issued b. t%e R;I and 7urrentl. %as one option.
5%ese are among t%e sa4est instruments a8ailable 4or in8estment, and is assured to get ba7k t%e
4ull amount o4 t%e in8estment. 5%e interest is ?Q rate per annum, w%i7% is taxable. 5%e
maturit. period o4 t%e ?Q 0taxable2 bond is six .ears.
5%e minimum in8estment is Rs ,,))). Lne 7an appl. in multiples o4 Rs ,,))) t%erea4ter.
5%ere is no pres7ribed upper limit to in8est in t%is instrument.
Capital 0ain Bonds9
5%e. also distribute ot%er bonds like #ational Housing ;ank 0#H;2 and Rural :le7tri7al
Corporation 3td. 0R:C2.
cA Mutual -unds
In a mutual 4und man. in8estors 7ontribute to 4orm a 7ommon pool o4 mone.. A mutual 4und
uses t%is mone. t%at is 7olle7ted 4rom in8estors, to bu. t%ose assets w%i7% are spe7i4i7all.
permitted b. its stated in8estment obje7ti8e. 6or example, a growt% 4und will bu. mainl.
eAuit. assets1 ordinar. s%ares, pre4eren7e s%are, warrants et7. An in7ome 4und would mainl.
bu. debt instruments like debentures and bonds. 5%e 4undFs assets are owned b. t%e in8estors
in t%e same proportion as t%eir 7ontributions bears to t%e total 7ontributions o4 all in8estors put
toget%er. In India, a mutual 4und is 7onstituted as a trust and t%e in8estor subs7ribes to t%e
units o4 t%e s7%eme laun7%ed b. t%e 4und.

35 | P a g e


6igure =: Pro7ess o4 !utual 6unds
-eaturesJBenefits9
5%e mutual 4unds o44ered b. IndusInd bank are emerging as t%e 4a8ourite in8estment 8e%i7le
be7ause o4 t%e man. ad8antages it enjo.s o8er ot%er 4orms and a8enues o4 in8esting.
6ollowing are t%e most important ones among ot%ers:
Portfolio "i8ersification
5%e bank in8ests in !utual 4unds w%i7% are well di8ersi4ied port4olio o4 4unds. 5%is enables
t%e 7lient to %old a di8ersi4ied in8estment port4olio e8en wit% a small amount o4 in8estment,
w%i7% would ot%erwise reAuire a big 7apital.
Professional Management Skills
!utual 4und managersF team in t%e bank is an ex7ellent resear7% team. 5%e. %elp t%e 7lientsF
b. monitoring and sele7ting sto7ks more e44i7ientl.. !utual 4unds 7an a44ord to %ire 4ull1time,
%ig%1le8el in8estment anal.sts and %a8e real1time a77ess to 7ru7ial market in4ormation. 5%us,
t%e. are able to exe7ute trades on t%e largest and most 7ost1e44e7ti8e s7ale.
#conomies of Scale
I4 in8ested dire7tl., t%e in8estor ma. %a8e to bear all t%e 7osts o4 in8esting su7% as brokerage
or 7ustod. o4 se7urities w%i7% ma. be 8er. %ig%. 5%e wealt% manger in t%e bank so in8est in
mutual 4und as t%e. a7%ie8e e7onomies o4 s7ale and pa. lesser 7ost o4 brokerage be7ause o4
larger 8olumes w%i7% allows t%e 7lient to redu7e 7osts signi4i7antl..
)iDuidityK Con8enience and -le7iEility
/ue to la7k o4 in1dept% knowledge, in8estors o4ten %old s%ares or bonds t%at t%e. 7annot
easil. sell. ealt% !anager in t%e bank so in8ests in su7% mutual 4unds w%i7% are more liAuid,
7on8enient and 4lexible and o44er man. in8estor ser8i7es like swit7%ing or trans4er 4rom one
4und to anot%er, sale or redemptions.
36 | P a g e

*ffordaEility
5%e wealt% manger would in8est in a port4olio o4 assets, i.e. bonds, s%ares, et7. depending
upon t%e in8estment obje7ti8e o4 t%e 7lient and t%e a44ordabilit. o4 t%e 7lient.
Ta7 Benefit
5%e wealt% manager in8ests in su7% spe7i4i7 s7%emes o4 mutual 4unds 0:Auit. 3inked Sa8ings
S7%emes2 w%i7% gi8e in8estors t%e bene4it o4 dedu7tion o4 t%e amount in8ested, 4rom t%eir
taxable in7ome. 6urt%er, %e also makes it sure t%at t%e di8idend t%at t%e in8estor re7ei8es 4rom
t%e s7%eme, is tax4ree.
dA Su8arna Mudra
At IndusInd bank, t%e bank o44ers gold 7oins o4 ( di44erent si9es: 'gms, ,)gms and ingots o4 ') gms.
5%e 4eatures and bene4its o4 t%ese 7oins are:
5%e. are magni4i7entl. designed and presented in 5amperproo4 Assa. Certi4ied Certi7ard
5%e. %a8e t%e %ig%est purit. o4 @@.@@Q
5%e. are a8ailable at all t%e ,-' bran7%es a7ross t%e 7ountr.
5%e. 7an be pur7%ased b. 7as% 0upto Rs. '),)))2, debit to a77ount 0IndusInd 7ustomers2 or against
Pa.order G/emand /ra4t.
#on17ustomers 7an also pur7%ase t%e 7oins.
5%e bank gi8es dis7ounts 4or bulk pur7%ases.
37 | P a g e

eA *lternate In8estment Products
At Indusind, a broad range o4 Alternate in8estment produ7ts are also o44ered to di8ersi4. t%e
traditional port4olio o4 t%e 7lient.
Alternate In8estment Produ7ts 7omprise o4 t%ree main produ7ts1 stru7tured Produ7ts, Pri8ate :Auit.
and Port4olio !anagement Ser8i7es. 5%ese produ7ts are spe7iall. designed to 7ater to a ni7%e
segment o4 7ustomers %a8ing di44erent risk reward appetite.
Portfolio Management Ser8ices
Port4olio !anagement Ser8i7es are produ7ts o44ered b. 8arious 6und %ouses t%at in8est in sto7ks,
4ixed in7omes, debt, 7as% and ot%er 4inan7ial instruments. 5%ese are managed b. pro4essional
port4olio managers o4 t%e bank to meet spe7i4i7 indi8idual obje7ti8es. +nlike a mutual 4und w%ere
t%e in8estor %olds units, in a P!S produ7t, t%e in8estor %olds indi8idual se7urities.
Structured Products
Stru7tured produ7ts are in8estment plat4orms t%at gi8e exposure to eAuit. markets, interest rates,
bonds, 7urren7., 7ommodit. and deri8ati8es to gi8e t%e upside in returns w%ile prote7ting .our
downside. A Stru7tured Produ7t is 7reated b. 7ombining t%e e7onomi7s o4 a long 7all option on
eAuit. wit% a long dis7ount bond position. 5%e in8estment stru7ture generall. pro8ides ,))Q
prin7ipal prote7tion. 5%e 7oupon or 4inal pa.ment at maturit. is determined b. t%e appre7iation o4
t%e underl.ing eAuit..
Pri8ate #Duity
Pri8ate :Auit. Produ7ts in8est in opportunities in 7ompanies t%at are not publi7l. traded on a sto7k
ex7%ange. Pri8ate :Auit. %as emerged as an attra7ti8e asset 7lass. Howe8er, la7king t%e expertise or
t%e time or resour7es to stru7ture and monitor t%e Pri8ate :Auit. in8estment, .ou 7an in8est
indire7tl. t%roug% a pri8ate eAuit. 4und.
38 | P a g e

fA Currency "eri8ati8es9
As per R;I and S:;I noti4i7ations, members o4 re7ogni9ed sto7k ex7%anges onl. 7an o44er t%ese
produ7ts to t%eir 7ustomers. R;I, S:;I and :x7%anges guidelines go8ern t%e ;anks parti7ipating in
t%e 7urren7. 4utures segment.
IndusInd ;ank 3td. is t%e 7learing 7um trading member wit% ex7%anges 1 #S: and !CH1SH. As o4
now, t%e bank allows trading in 7urren7. 4utures on t%e #S: plat4orm.
/o= it =orks
5%is is a margin based produ7t. 5%e bank 7olle7ts t%e margin mone. as 7ollateral in ad8an7eGup14ront
4rom all t%e 7ustomers eligible 4or trading in 7urren7. 4utures wit% t%e ex7%anges. Colle7tion o4
7lient margin is mandator. and dail. reporting is reAuired to be done to t%e :x7%anges b. t%e trading
member. !ark1to1market 0!5!2 loss or gain is debited or 7redited to t%e 7ustomers Current
A77ountGSa8ings A77ount 0CASA a77ount2 on dail. basis.
5%e 7lient 7an keep initial margin in t%e 4orm o4 Cas% andGor 6ixed /eposit as 7ollaterals towards
margin 4or trading or taking exposures in t%e 7urren7. 4utures segment. 6ixed /eposit %as to be
made wit% IndusInd ;ank sour7ing bran7% onl.. 5%e !5! margin %as to be alwa.s maintained in
7as% as it is settled wit% t%e respe7ti8e ex7%anges on dail. basis in 7as%. 6or Indi8idual Clients t%e
amount proposed is Rs.,))))) and 4or t%e 7orporate 7lients t%e amount proposed is Rs.'))))). 5%e
limit pro8ided 4or trading is ?)Q o4 t%e a8ailable 7ollaterals.
6or trading, t%e 7ustomers %a8e t%e option to 7%oose Lnline and o44line mode. Lnline 5rading is
arranged t%roug% 5rading Plat4orm pro8ided b. Respe7ti8e :x7%anges.
L44line 5rading, 7lients 7an do 7all and trade wit% I;3 /ealing Room. As t%is is t%e order dri8en
market, pri7e being determined b. t%e underl.ing spot market it is ad8isable to do on line trading
onl.. 5%e 7lients will %a8e to 7on8in7ingl. establis% t%e 7ustomer identit. to t%e dealers.
Business Rules9
"uidelines issued b. Reser8e ;ank o4 India and S:;I on Know Tour Customer 0KTC2 and In Person
$eri4i7ation reAuires intensi8e due diligen7e at t%e time o4 establis%ing relations%ip.
:x7%ange > Clearing Corporation rules and guidelines on !embers%ip Complian7es, !argin, !5!
Settlement, Collateral !anagement and internal audit.
#IS! Certi4i7ation is a !+S5 4or 4ollowing Sta44 at ;ran7%es and at Corporate L44i7es.
Sale Representati8e at ;ran7%es.
C/S & Lperational Sta44.
/ealers & :xe7uting 5rades on be%al4 o4 t%e 7lients.
39 | P a g e

The Eroad product features are as per the follo=ing9
Resident Indians 7an trade in t%e 7urren7. pairs o4 +S/1I#R, :+R1I#R, ";P1I#R and JPT1I#R
It is a margin based produ7t and t%e initial margin reAuirement is Rs.,)))))G1 4or indi8iduals and
Rs.')))))G1 4or non1indi8iduals.
All 7ontra7ts are o4 mont%1end maturit. 0, mont%, *mont%s up to ,* mont%s2, t%e 7ontra7t is known b.
its expir. date wit% a lot si9e o4 ,)))Gunit 7an be traded. In 7ase o4 JPTGI#R t%e lot si9e is ,))))) units
and Auote is per ,)) Ten.
All open 7ontra7ts are !arked to !arket 0!5!2 at settlement pri7e b. t%e ex7%anges at end o4 da..
!5! pro4itGloss will be settled wit% 7ustomer on a dail. basis
Curren7. 6utures as an asset 7lass is 7onsidered as a moderate risk and %ig% .ielding port4olio gi8en t%e
two wa. 8olatilit.
#o reAuirement o4 underl.ing do7uments 4or trading in t%is produ7t
6ull. regulated and transparent market pla7e

Counter part. de4ault risk eliminated due to parti7ipation o4 7learing 7orporation o4 t%e respe7ti8e
ex7%anges
#arrow ;id1Ask spread on regular basis
The product is Eest suited for9
40 | P a g e

,. 5%ose w%o do not %a8e a77ess to L5C !arkets and to indi8iduals w%o wis% to add 7urren7. 4utures into
t%eir asset port4olio
*. In8estors
(. Hedgers
=. Arbitrageurs
/o= to get Currency "eri8ati8e *ccountL
An. IndusInd ;ank bran7%Fs ser8i7e exe7uti8es will %elp to open a 7urren7. deri8ati8e a77ount. It is
ad8ised to %a8e a CASA a77ount wit% us as dail. !5! settlements %appens wit% t%e :x7%anges and
7ollaterals are monitored.
Policy for treatment of In:acti8e *ccount in the currency deri8ati8e segment9
I4 t%e 7lient %as not traded 8ia t%at a77ount 4or more t%an six mont%s, t%en t%e a77ount would be suspended
4or trading. And t%e 7redit a8ailable in t%e ClientEs margin a77ount 0i4 an.2 wit% t%e ;ank, is re4unded at t%e
7lientEs reAuest. I4 t%e 7lient is desirous o4 rea7ti8ating %is a77ount post t%e suspension, t%en it 7an be done
b. sending a written reAuest 4or t%e same.
I!S'R*!C#
0eneral information aEout insurance9
Insuran7e is de4ined as t%e eAuitable trans4er o4 t%e risk o4 a loss, 4rom one entit. to anot%er, in ex7%ange
4or pa.ment. An insurer is a 7ompan. selling t%e insuran7eR t%e insured, or poli7.%older, is t%e person or
entit. bu.ing t%e insuran7e poli7.. 5%e amount to be 7%arged 4or a 7ertain amount o4 insuran7e 7o8erage is
7alled t%e premium. 5%e transa7tion in8ol8es t%e insured assuming a guaranteed and known relati8el. small
loss in t%e 4orm o4 pa.ment to t%e insurer in ex7%ange 4or t%e insurerEs promise to 7ompensate 0indemni4.2
t%e
insured in t%e 7ase o4 a 4inan7ial 0personal2 loss. 5%e insured re7ei8es a 7ontra7t, 7alled t%e insuran7e
poli7., w%i7% details t%e 7onditions and 7ir7umstan7es under w%i7% t%e insured will be 4inan7iall.
7ompensated.
41 | P a g e

Insurance terminology9
Bound9 Ln7e t%e insuran7e %as been a77epted and is in pla7e, it is 7alled UboundU. 5%e pro7ess o4
being bound is 7alled t%e binding pro7ess.
Insurer9 A person or 7ompan. t%at a77epts t%e risk o4 loss and 7ompensates t%e insured in t%e
e8ent o4 loss in ex7%ange 4or a premium or pa.ment. 5%is is usuall. an insuran7e 7ompan..
Insured9 5%e person or 7ompan. trans4erring t%e risk o4 loss to a t%ird part. t%roug% a 7ontra7tual
agreement 0insuran7e poli7.2. 5%is is t%e person or entit. t%at will be 7ompensated 4or loss b. an
insurer under t%e terms o4 t%e insuran7e 7ontra7t.
Insurance RiderJ#ndorsement9 An atta7%ment to an insuran7e poli7. t%at alters t%e poli7.Es
7o8erage or terms. 05o learn more, read 3et 3i4e Insuran7e Riders /ri8e Tour Co8erage.2
Insurance 'mErella Policy9 %en insuran7e 7o8erage is insu44i7ient, an umbrella poli7. ma. be
pur7%ased to 7o8er losses abo8e t%e limit o4 an underl.ing poli7. or poli7ies, su7% as %omeowners
and auto insuran7e. %ile it applies to losses o8er t%e dollar amount in t%e underl.ing poli7ies,
terms o4 7o8erage are sometimes broader t%an t%ose o4 underl.ing poli7ies.
InsuraEle Interest9 In order to insure somet%ing or someone, t%e insured must pro8ide proo4 t%at
t%e loss will %a8e a genuine e7onomi7 impa7t in t%e e8ent t%e loss o77urs. it%out an insurable
interest, insurers will not 7o8er t%e loss. It is wort% noting t%at 4or propert. insuran7e poli7ies, an
insurable interest must exist during t%e underwriting pro7ess and at t%e time o4 loss. Howe8er,
unlike wit% propert. insuran7e, wit% li4e insuran7e, an insurable interest must exist at t%e time o4
pur7%ase onl..
*t IndusInd Eank9
5%e bank o44ers 7ustomi9ed solutions t%at in7lude A77ident, Healt%, 3iabilit., !arine, !otor, Propert.,
5ra8el > Rural Insuran7e 4or indi8iduals as well as 7orporate 7ustomers in asso7iation wit%
C%olamandalam !S "eneral Insuran7e Compan. 3td.
So t%e t.pes o4 insuran7e a8ailable are:
Healt% Insuran7e
!otor Insuran7e
Home Insuran7e
5ra8el Insuran7e
42 | P a g e

3i4e Insuran7e
C%ola A77iCare
% /ealth Insurance9
Healt% related emergen7ies are an undesirable part o4 our li8es. In toda.Fs age, li4est.le diseases are also
in7reasing. At times, t%e. 7an also lead to %ospitali9ation and a prolonged re7uperation. /uring su7% times,
i4 .ou are not adeAuatel. 7o8ered, it 7an lea8e .our 4inan7es in disarra.. Healt% Insuran7e is t%e answer to
t%e 4inan7ial di44i7ulties arising out o4 su7% unexpe7ted emergen7ies.
5%e bank o44ers a single poli7. t%at 7o8ers t%e %ealt% insuran7e needs 4or .our entire 4amil.. 5%e 4loating
sum insured gi8es .ou t%e 4lexibilit. o4 extending t%e bene4it a7ross all 4amil. members. It is simple to bu.
and o44ers more 7ompre%ensi8e 7o8erage, more 7on8enien7e and more 7are. 5%is produ7t is designed b.
C%olamandalam !S "eneral Insuran7e Co. 3td.
Benefits9
i MM&R#N Comprehensi8e Co8erage
Hospitali9ation, da. 7are and outpatient needs 0dental 7are, e.e 7are et7.2
!aternit. %ospitali9ation
A.ur8edi7 5reatments also 7o8ered
,=, da. 7are pro7edures t%at reAuire less t%an *= %ours %ospitali9ation
-) da.s pre1%ospitali9ation and @) da.s post1%ospitali9ation expenses
ii MM&R#N Con8enient
#etwork o4 o8er *,-)) partner %ospitals a7ross t%e 7ountr. 4or 7as%less %ospitali9ation
/ire7t 7laims settlement t%roug% C%ola !S H:3P & *=x<
Cas%less aut%ori9ation wit%in * %ours o4 intimation

iii MM&R#N Caring
6ree Healt% C%e7k1up > e.e examination e8er. * 7laim 4ree .ears
Claim 4ree bonus upto ')Q o4 Sum Insured & to %elp 4ig%t medi7al in4lation
43 | P a g e

C%ola ellness Healt% Alert Ser8i7e on .our !obile p%one
-eatures9
-eature #ligiEility
6loater Sum Insured Rs.=G-G,) 3ak%
Claim 6ree ;onus 1 upto
')Q o4 SI
'Q o4 SI 4or e8er. 7laim 4ree .ear
Room, ;oarding > #ursing
:xpenses
SI Rs.= lak% 1 AC Single Room upto Rs.(,)))G1 per da.
SI Rs.- > ,) 3ak% & AC Single Room upto ,Q o4 SI per da.
Home Hospitali9ation +p to *'Q SI, max o4 Rs., lak%
/ail. Cas% 4or
7%oosing s%ared
a77ommodation
Rs.'))G1 per da. 4or max ,= da.s 0, da. dedu7tible2
"eneral Healt% C%e7k1up
> :.e :xamination
,.)Q o4 SI on7e a4ter e8er. two 7ontinuous 7laim 4ree renewals per
4amil.
:mergen7. Ambulan7e Rs.(,)))G1 per insured per poli7. .ear
!aternit. expenses 0'
.r.waiting period2
Rs.*',)))G1 0normal2 > Rs.=),)))G1 0Caesarean2
A.ur8edi7 5%erap.
5reatments
+pto <.' Q o4 SI.
*)Q 4or 7o1pa.ment 4or spe7i4i7 treatments
LP/ /ental 0( .r. waiting
period2
,Q o4 SI 0max o4 Rs.',)))G1 wit% ()Q 7o1pa.ment2
:xternal Aids 0Spe7s ,
Conta7t 3ens, Hearing aids2
waiting period ( .ears
,Q o4 SI max Rs.')))G1 on7e in a blo7k o4 * .ears wit% ()Q 7o1
pa.ment b. insured
Redu7tion o4 Claim 6ree
bonus in 7ase o4 a 7laim
'Q
Sub 3imits against /iseases #o Sub 3imits
44 | P a g e

Main #7clusions
;ene4its will not be a8ailable 4or pre1existing 7onditions until *= mont%s o4 7ontinuous
7o8erage 4rom 4irst poli7. start date
:xpenses during 4irst () da.s o4 7ommen7ement o4 poli7. ex7ept in t%e 7ase o4 a77idents.
#ot appli7able 4or renewals
Catara7t, ;enign Prostati7 H.pertrop%., H.stere7tom. 4or !enorr%agia or 6ibrom.oma,
Hernia, H.dro7ele, 6istula, Piles, Sinusitis and related disorders, "all stones 7o8ered a4ter a
waiting period o4 one .ear
Spond.litis, Spondilosis, Knee G Hip joint repla7ement, Heart disease, Internal 7ongenital
diseases, an. t.pe o4 Car7inoma G Sar7oma G ;lood Can7er, Lsteoart%ritis o4 joint, Cal7ulus
diseases o4 "all bladder, and +rogenital, "astri7 and /uodenal +l7ers, Internal tumors,
7.sts, nodules, pol.ps in7luding breast lumps 0ea7% o4 an. kind, unless malignant2, "out and
R%eumatism, :#5 disorders and Surger., Surger. o4 "enitourinar. s.stem, Surger. 4or
prolapsed Inter 8ertebral disk, Surger. o4 $ari7ose 8eins and $ari7ose +l7ers, Surger. on
7o8ered a4ter a waiting period o4 two .ears.
( Motor Insurance9
C%ola Prote7t (-)Z is a one1o41its1kind all1in7lusi8e Pri8ate Car Insuran7e Pa7kage Poli7.,
w%i7% not onl. 7o8ers .our 4inan7ial loss to t%e maximum, but also makes sure t%at e8er.
situation is under 7ontrol.
,ey -eatures9
5otal 4inan7ial 7o8erage e.g., Reinstatement 8alue G #il depre7iation
Car emergen7. assistan7e e.g., 6uel deli8er. G batter. jump start
45 | P a g e

Car breakdown assistan7e e.g., 6lat t.re G on1site repair e.g., 4uel deli8er. G batter. top up
Post a77ident assistan7e e.g., /ail. allowan7e G 5owing ser8i7e
;ene4its
C*R# for Road #mergencies
5%is plan assists .ou at e8er. point, w%et%er it is 7ar emergen7. assistan7e like 4uel deli8er.G
batter. top up or 7ar breakdown assistan7e like 4lat t.reGon1site repair, CAR: will be wit%
.ou alwa.s.
"epreciation Wai8er on Vehicle Parts
ai8er will depend on t%e age o4 t%e 8e%i7le as per t%e plan opted.
Reinstatement Value to ensure ma7imum claim Eenefit: -ull Car In8estment Security
5%e 7ar is insured on NReinstatement $alue ;asisO, i.e. t%e original in8oi7e 8alue. In 7ase o4
total loss G 7onstru7tion total loss 0<'Q damage to t%e 7ar2 o4 7ar, insured will be
7ompensated on t%e basis o4 8e%i7le in8oi7e 8alue. 5%e depre7iation on repla7ed parts in 7ase
o4 a77ident G partial loss will be 9ero.
"aily *llo=ance
6ixed allowan7e o4 Rs.'))1G or Rs.,)))1G to meet t%e 7ost o4 %iring a 7ar 0maximum o4 '
da.s per poli7. period2 w%ile .our insured 7ar is under repair at t%e garage due to a77ident.
Co8er for Personal )uggage )oss
e will reimburse market 8alue o4 personal luggage 4or t%e loss or damage 7aused b. 4ire or
a77ident pro8ided t%e luggage were inside t%e lo7ked 7ar during t%e mis%ap.
Co8er for Car ,ey loss
A 4ixed amount will be reimbursed towards dupli7ate ignition ke. repla7ement, i4 t%e
original is lost.
46 | P a g e

Co8er for "ri8ing )icense )oss
Tou will get a 4ixed amount to obtain a dupli7ate li7ense, i4 .our original dri8ing li7ense is
lost.
Chola *d8antage9
/edi7ated 7all 7entre 4or re7ei8ing .our 7laim intimation.
Cas%less 7laim settlement at o8er =)) C%ola pre4erred garages.
3ess paperwork.
Smoot% and %assle14ree 7laim pro7ess.
&=n "amage ?&"A Co8er9
Co8er against loss and damage to .ou 8e%i7le due to an. o4 t%e 4ollowing perils: 6ire, explosion,
sel41ignition or lig%ting. ;urglar., %ousebreaking or t%e4t, riot and strike, eart%Auake 04ire and
s%o7k damage2, 4lood, t.p%oon, %urri7ane, storm and tempest, inundation, 7.7lone, %ailstorm,
4rost, mali7ious a7t, terrorist a7ti8it., land slide, ro7k slide. %ilst in transit b. road, rail, inland
waterwa., li4t, ele8ator or air. A77idental external means t%ird Part. Personal 3iabilit. Co8er as
per 7ourt awards as .our liabilit. to t%e t%ird part. due to a77idental deat% or injuries 7aused b.
.our 8e%i7le will be met b. us t%ird Part. Propert. /amage Compensation up to Rs.<,'),))) in
7ase o4 Pri8ate Cars.
Personal *ccident Co8er
5%e owner 1 dri8er 07ompulsor.2: Co8er o4 Rs.*))))). +nnamed passengers in7luding spouse,
7%ildren, parents, et7., Rs.,)))) to a maximum o4 Rs.*))))).
/is7ounts a8ailable under basi7 7ompre%ensi8e 7o8erage.
/is7ount 4or Anti 5%e4t /e8i7es 4itted in 8e%i7le, appro8ed 4rom Automobile Resear7%
Asso7iation o4 India 0ARAI2.
47 | P a g e

Automobile Asso7iation !embers%ip /is7ount.
$oluntar. Claim :x7ess G /edu7tible /is7ount: I4 .ou opt 4or %ig%er dedu7table 4or ea7% 7laim
o8er and abo8e t%e 7ompulsor. dedu7table an L/ premium dis7ount will be gi8en, depending
on t%e option exer7ised.
#o Claim ;onus 0#C;2: I4 .ou do not lodge an. 7laim in t%e 4ull poli7. period o4 one .ear t%en
.ou are eligible 4or #C; on poli7. renewal.
#7clusions
A77idental loss or damage su44ered w%ile dri8ing under t%e in4luen7e o4 intoxi7ating liAuor or
drug.
A77idental loss or damage 7aused due to wil4ul negligen7e.
3oss or liabilit. w%ile t%e 8e%i7le is used outside t%e s7ope o4 limitations o4 use andG or being
dri8en b. a person not dul. li7ensed.
ConseAuential loss, depre7iation, wears > tears, me7%ani7al > ele7tri7al breakdownG 4ailure o4
breakages.
3oss due to radioa7ti8it. or nu7lear weapons.
3oss due to war and related a7ti8ities.
48 | P a g e

+ /ome Insurance9
Lur %ome is our %a8en, awa. 4rom t%e pressures o4 work and toda.Fs 4ast pa7ed li4est.le. An.
loss to it or its 7ontents 7an 7reate an emotional impa7t on us and our 4amil.. So w%. lea8e our
emotions to 7%an7eV
Chola Total /ome Protect o44ers triple bene4its 1 a one1o41a1kind re8olutionar. %ome
insuran7e plan t%at gi8es .ou t%ree14old prote7tion 4rom an. su7% un4ortunate 7ir7umstan7es.
Benefits
Compre%ensi8e 7o8erage 1 Co8er 4or t%e %ouse stru7ture, 7ontents and 4amil. against
un4oreseen un4ortunate e8ents.
:as. pur7%ase pro7ess 1 #o do7uments or 8aluation 7erti4i7ate reAuired w%ile pur7%asing t%e
poli7.
Con8enient 7laims pro7essing > Aui7k settlement.
ide range o4 sum insured.
-eatures
% Co8er for Building Structure > Contents
5%is 7o8ers t%e building > 7ontents against loss G damage arising 4rom:
6ire, lig%tning, explosions, implosions, riots, strike or mali7ious a7ts.
:art%Auakes, s%o7k, subsiden7e, landslide.
49 | P a g e

6lood, inundation, storm, tempest, t.p%oon, %urri7ane, tornado, 7.7lone.
!issile testing operations.
5errorism.
( *dditional Co8ers
Co8er 4or /omesti7 :le7tri7al Applian7es against ele7tri7al breakdown.
Co8er 4or Jeweller. and 8aluables against burglar., 7%ain snat7%ing, damage b. 4ire,
eart%Auake and 4loods.
Co8er 4or Plate "lass against external damage.
Co8er 4or 3oss o4 ;aggage w%ile tra8elling in India.
Pur7%ase Prote7tion Co8er 4or new domesti7 applian7es o8er and abo8e t%e Contents Co8er.

+ Co8er for People
Additional Rent 4or Alternate A77ommodation 4or %ouse owners.
6amil. 6loater A77ident Hospitali9ation Co8er.
Personal A77ident Co8er 4or sel4, spouse and two 7%ildren
50 | P a g e

Co8er 4or 3egal 3iabilit..
Co8er 4or orkmenEs Compensation towards domesti7 %elp.
Plans9
Platinum
;uilding stru7ture 7o8er Lnl. i4 own %ouse
Contents & 6ire, burglar.,
eart%Auake, terrorism
T
House%old applian7es &
ele7tri7al > me7%ani7al
breakdown
T
Jeweller. > 8aluables T
6amil. 4loater a77idental
%ospitali9ation
T
Additional rent 4or alternate
a77ommodation
Lnl. i4 own %ouse
Personal A77ident T
Publi7 3iabilit. T
;aggage loss T
Plate "lass insuran7e T
orkmenFs Compensation T
Pur7%ase prote7tion T
#7clusions9
51 | P a g e

3oss, destru7tion or damage to bullion or unset pre7ious stones, an. 7urios or works o4 art
ex7eeding Rs. ,),))), manus7ripts, plans, drawings, se7urities, do7uments o4 an. kind,
stamps, 7oins or paper mone., 7%eAues, business books, 7omputer s.stems re7ords,
explosi8es.
3oss G damage to li8esto7k, motor 8e%i7les > 7.7les.
3oss G damage to arti7les o4 7onsumable nature.
/amage 4or w%i7% manu4a7turer or supplier o4 propert. is responsible under !aintenan7e
Agreement.
"raduall. de8eloping 4laws, de4e7ts, 7ra7ks or partial 4ra7tures in an. part not ne7essitating
immediate stoppage, alt%oug% at some 4uture time repair or repla7ement o4 t%e parts a44e7ted
ma. be ne7essar..
/eterioration o4 or wearing awa. or wear out o4 an. item 7aused b. or naturall. resulting 4rom
normal use or exposure.
/amage 7aused b. or arising out o4 will4ul a7t or will4ul gross negligen7e o4 Insured or %is
emplo.ee.
/amage due to 4aults existing at t%e time o4 7ommen7ement o4 t%is Insuran7e and not known
to t%e Insured, regardless o4 w%et%er su7% 4aults or de4e7ts were known to t%e Compan. or not.
3oss or damage w%ilst being 7on8e.ed b. an. 7arrier under 7ontra7t o4 a44reig%tment.
52 | P a g e

:mbossed, sil8ered, lettered, ornamental, 7ur8ed or an. glass w%atsoe8er, ot%er t%an plain and
o4 ordinar. gla9ing Aualit..
. Tra8el Insurance9
C%ola !S S%ort 5erm 5ra8el Poli7. is a great 7ompanion on .our %olida.s or business trips
abroad. Co8er unexpe7ted in7idents like baggage lossGdela., 4lig%t dela.s, medi7al expenses,
loss o4 tra8el do7umentsG4unds et7 wit% t%e C%ola !S 5ra8el poli7..
Benefits9
( mont%s onwards.
/oor1to1door Co8er.
Ad8enture Sports Co8er.
Pa. onl. 4or w%at .ou use.
Co8er 4or all .our 4amil. members, in7luding senior 7iti9ens.
:xpress Claims Pro7essing.
( Plans wit% Sum Insured ranging 4rom S'),))) to S*'),))).
#o medi7al 7%e7kup reAuired upto -' .ears.
53 | P a g e

-eatures
Compensation 4or 5otal 3oss o4 C%e7ked1in ;aggage.
Compensation 4or dela. o4 C%e7ked1in ;aggage.
Reimbursement in 7ase o4 5rip Can7ellation or Curtailment.
Reimbursement 4or meals and lodgings due to trip dela..
Hija7k Relie4.
Co8er 4or 3oss o4 Passport > International /ri8ing 3i7ense.
L8erseas > /omesti7 Co8erage 4or deat% and or permanent total disabilit..
Compensation towards an. legal liabilit..
Compensation towards 4unds lost i4 insured.
Hospital /ail. Cas%.
Home ;urglar. Co8er.
#7clusions
An. treatment i4 t%at is t%e sole reason or one o4 t%e reasons 4or t%e tra8el o8erseas.
An. treatment w%i7% 7ould in t%e opinion o4 t%e L8erseas Administrator and attending
/o7tor be or %a8e been dela.ed until t%e InsuredEs return to India.
54 | P a g e

ar 0w%et%er de7lared or not2, 7i8il war, in8asion, a7t o4 4oreign enemies, rebellion,
re8olution, insurre7tion, mutin., militar. or usurped power, sei9ure, 7apture, arrest, restraint
or detainment, 7on4is7ation or nationali9ation or reAuisition o4 or damage b. or under t%e
order o4 an. go8ernment or publi7 lo7al aut%orit. or terrorism or terrorist a7ts. Howe8er, 4or
t%e s7ope o4 t%e Hija7k Relie4 onl., terrorism ex7lusion s%all stand ex7luded 4rom t%e
"eneral :x7lusions 7ategor..
An. intentional, re7kless or 7riminal a7t, sui7ide, or attempted sui7ide, or t%e use or abuse o4
an. drugs, al7o%ol and t%e like.
Parti7ipation in na8al, militar. or air 4or7e operations w%et%er in t%e 4orm o4 militar.
exer7ises or war games or a7tual engagement wit% t%e enem. w%et%er 4oreign or domesti7.
An. loss o4 w%i7% a 7ontributing 7auses was t%e InsuredEs a7tual or attempted 7ommission
o4, or wil4ul parti7ipation in, an illegal a7t or an. 8iolation or attempted 8iolation o4 t%e law
or resistan7e to arrest.
HI$, AI/S and all related medi7al 7onditions.
2 )ife Insurance9
IndusInd ;ank o44ers 7ustomi9ed insuran7e solutions w%i7% o44er 7ompre%ensi8e produ7t
port4olio meeting all 7ustomer li4e 7.7le needs o4 C%ild planning, Sa8ings, Retirement Planning
and Prote7tion in asso7iation wit% A8i8a 3i4e Insuran7e. A8i8a 3i4e Insuran7e India is a joint
8enture between one o4 t%e 7ountr.Fs oldest and largest groups, /abur, and A8i8a pl7, t%e
worlds 4i4t% largest and t%e +KEs largest insuran7e group, w%ose asso7iation wit% India dates
ba7k to ,?(=.
-eatures > Benefits
55 | P a g e

it% a strong sales 4or7e o4 o8er (),))) 6inan7ial Planning Ad8isers 06PAs2, A8i8a %as
initiated and pioneered man. inno8ati8e sales approa7%es, in7luding t%e 7on7ept o4
;an7assuran7e and 6inan7ial Healt% C%e7k ser8i7es.
A seasoned team o4 4und managers make our 4und management are one o4 t%e ke.
di44erentiators wit% A8i8a. Keeping wit% A8i8aFs 7ommitment o4 so7ial responsibilit., A8i8a
%as been su77ess4ul in rea7%ing out to t%e underpri8ileged strata t%roug% t%eir !i7roinsuran7e
initiati8es.
A8i8a brings to t%e 7lients, not just a robust produ7t port4olio meeting all .our li4e7.7le needs
related to & Sa8ings, Retirement, In8estments and Prote7tion but rig%t in8estment strategies t%at
will %elp .ou plan 4or a se7ured 4uture.
Types
Child Plans9 A 7ompre%ensi8e plan to %elp reali9e .our 7%ildFs dreams.
Sa8ings9 A simple plan to take 7are o4 ,))Q o4 .our prote7tion and sa8ing needs.
Retirement Plans9 A plan t%at ensures t%at .ou donEt wait till -) to 4ollow .our %eart.
Protection Plan9 A pure risk 7o8erage plan t%at pro8ides 6inan7ial prote7tion against
un4oreseen risks.
3 Chola *cciCare9
56 | P a g e

It is a uniAue insuran7e poli7. t%at more t%an just pa.s 4or a77idental emergen7ies. 5%is poli7.
o44ers .ou a 7as% bene4it in 7ase o4 7riti7al illness as well as regular %ospitali9ation.
C%olamandalam !S "eneral Insuran7e Compan. 0C%ola !S2 is a joint 8enture between t%e
+SS ( ;illion !urugappa "roup > !itsui Sumitomo Insuran7e "roup Japan. !urugappa
"roup is a pioneer and market leader in 8arious 4ields and %as strong presen7e in 4ertili9ers,
Sugar, Abrasi8es, C.7les, bat%room a77essories and Consumer 4inan7e. !itsui Sumitomo is t%e
se7ond largest insuran7e "roup o4 Japan wit% a net written premium o4 +SS ,*.(@ ;illion in
"eneral Insuran7e. C%ola !S is %eadAuartered in C%ennai and %as ,,( o44i7es spread a7ross
India.
Benefits9
*ccident9
An a77ident poli7. t%at 7o8ers deat%, permanent partial disabilit., permanent total disabilit. and
additional bene4it 4or a77idents due to terrorism.
/ospital Cash9
I4 .ou are %ospitali9ed 4or an. illness or injur., we will pa. .ou per da. allowan7e 4or t%e
number o4 da.s in t%e %ospital. In 7ase o4 IC+ %ospitali9ation, we will pa. .ou double t%e
bene4it per da.. In 7ase o4 %ospitali9ation 4or more t%an *) 7ontinuous da.s, we will pa. a lump
sum amount.
Critical Illness9
I4 .ou are diagnosed wit% an. one o4 t%e ,) 7riti7al illnesses mentioned below, t%e plan will
pa. .ou a lump sum amount. Ln7e a 7laim is registered, t%is bene4it 7eases.
Cancer of specified se8erity
Stroke resulting in permanent symptoms
-irst heart attack of specified se8erity
57 | P a g e

&pen chest C*B0
,idney failure reDuiring regular dialysis
Multiple sclerosis =ith persisting symptoms
Major organJEone marro= transplant
Permanent paralysis of limEs
Surgery of aorta
Primary pulmonary hypertension
-eatures9
i #ntry *ge9
,? & '' .ears wit% no medi7al 7%e7kups
3i4etime renewal 4a7ilit.
58 | P a g e

ii Plan &ptions9
Personal *ccident
/eat% G permanent total
disabilit. G permanent partial
disabilit. due to an a77ident
Rs. ? lak%
/eat% G permanent total
disabilit. G permanent partial
disabilit. due to an a77ident
due to terrorism
Rs. ,* lak%
Hospital /ail. Cas%
Hospitali9ation up to *) da.s
Rs. ,,)))G1 per da.
Rs. *,)))G1 per da.
4or IC+
Hospitali9ation
Con8ales7en7e 0lump sum2
bene4it on 7ontinuous
%ospitali9ation o4 more t%an
*) da.s
Rs.,),)))G1
Criti7al Illness
3ump sum pa.out on
7on4irmed diagnosis o4 one o4
t%e ,) 7riti7al illnesses
Rs. , lak%
[5%e 7ompan. 4rom time to time and subje7t to IR/A appro8al, will re8ise t%e premium
ratesG terms and 7onditions based on experien7e.
[5%e premium rates, terms and 7onditions at t%e time o4 renewal s%all appl..
Claim Procedure9
59 | P a g e

Personal *ccident
Completed 7laim 4orm wit% proo4 o4 deat% G disabilit.. e will pa. .ou a lump sum amount
as per t%e poli7. limits.
/ospital Cash
All .ou need to gi8e us is t%e 7ompleted 7laim 4orm wit% dis7%arge summar. and diagnosis
reports. e will pa. .ou as per t%e poli7. limits.
Critical Illness
All .ou need to gi8e us is t%e 7ompleted 7laim 4orm wit% diagnosis reports 4or t%e 7riti7al
illness. e will pa. .ou a lump sum amount a4ter t%e sur8i8al period.
C/*PT#R .9 R#S#*RC/ M#T/&"&)&01
.% *ssisting the Wealth Managers at IndusInd Bank to create the portfolio9
5%e H# 7lients %a8e to pro8ide wit% details o4 t%eir assets, liabilities, priorities, a little bit in4ormation
about t%eir personal li4e et7. ;ased on su7% in4ormation, t%e wealt% manager 7reates t%e appropriate
port4olio.
5%e in4ormation is taken on a AuestionnaireG4orm w%i7% is prepared b. t%e bank 4or all t%e 7ustomers. It
in7ludes all t%e details. 5%is 4orm is known as t%e Customer Pro4iler.
A spe7imen is gi8en in t%e Appendix.
60 | P a g e

.( *fter creating the portfolioK selecting the Eest possiEle in8estment products9
5%e wealt% manager, based on t%e port4olio 7reated, looks into all t%e 8arious in8estment options
a8ailable 4or t%e 7ustomer.
5%e di44i7ult part is to 7on8in7e t%e 7ustomer t%at t%e options sele7ted b. t%e wealt% manager are in
a77ordan7e wit% t%e port4olio and do not guarantee t%e returns. 5%e. 7anFt be ri7%Gpoor in a single s%ot.
5o sele7t t%e in8estment options a77uratel., t%e wealt% manager uses di44erent 7al7ulators like:
a2 :du7ational Cost Cal7ulator
b2 H3$ Cal7ulator
72 Retirement Cal7ulator
d2 5ax Cal7ulator
aA #ducational Cost Calculator
5%is 7al7ulator tells t%e 7lient t%at %ow mu7% would be t%e 8alue o4 maturit. 4ee at t%e end o4 t%e
term.
It in7ludes 4a7tors like t%e age o4 t%e 7lient, %isG%er 7%ild, desired pro4ession and estimated 4ee, age o4
t%e 7%ild w%en t%e amount would be reAuired and in4lation rate.
A spe7imen is gi8en in t%e Appendix.
EA /)V Calculator
5%e 7on7ept o4 Human 3i4e $alue is Auite new in India. It is t%e expe7ted li4e time earnings o4 a
person. 5%is 7on7ept is important be7ause t%e 7ustomer w%en takes an. insuran7e poli7. keeps in
mind t%at t%e amount re7ei8ed at maturit. s%ould be able to maintain t%e existing li4e st.le. So in
order to 7al7ulate t%at personFs 8alue in monetar. terms t%is 7al7ulator is used.
It in7ludes t%e 7urrent age, expe7ted retirement age, annual gross in7ome, personal expenses, taxes,
8arious liAuid assets, 8arious s%ort term liabilities and expe7ted 8alue o4 dreams in monetar. terms.
A spe7imen is gi8en in t%e Appendix.
cA Retirement Calculator
5%is 7al7ulator is used to estimate t%e 8alue o4 sa8ings 0mont%l.2 t%at t%e 7ustomer %as to do to be
used a4ter retirement. ;asi7all. it is t%e retirement planner.
61 | P a g e

It in7ludes t%e 7urrent age, expe7ted retirement age, mont%l. expenses as o4 now, expe7ted in4lation
rate, expe7ted rate o4 return, annuit. rate, mont%l. in7ome post1retirement and target 7orpus reAuired.
A spe7imen is gi8en in t%e Appendix.
dA Ta7 Calculator
5%is 7al7ulator %elps in estimating t%e amount o4 tax pa.able b. t%e 7lient.
It in7ludes t%e gross in7ome, perks, dedu7tions under se7tion ,) and ?) et7.
A spe7imen is gi8en in t%e Appendix.
.+ Studying ho= the manager updates the e7isting portfolios of the clients9
Regular market studies and anal.sis o4 t%e a7tions taken b. t%e 7ompetitors %elps in making
de7isions regarding w%ere to in8est and %ow to 7on8in7e t%e 7lient.
As IndusInd bank doesnFt %a8e own produ7t, it needs to keep a 7onstant 7%e7k t%at w%i7%
7ompetitorFs produ7t is doing better and w%..
5%e reason w%. t%e bank doesnFt %a8e its own produ7t is: in words o4 Romes% Sobti, !/ and
C:L, IndusInd bank, t%e bank is a new one in t%e market and is not 4ull. establis%ed .et. 5%e
bank is on t%e de8eloping stage .et. !aking its own produ7ts and selling t%em would be 7ostlier
4or t%e bank. It would bring instabilit. in t%e bankFs 4inan7ial position i4 t%ose produ7ts donFt
sell in t%e market w%i7% t%e bank is not 7ompletel. read. to 4a7e.
So, it uses ot%er 7ompaniesF produ7ts and sells t%em and earns 7ommission on t%em. 5%is %as
earned t%e bank a good amount o4 time to stud. t%e market t%oroug%l. and be on a sa4er side.
So to keep updating t%e port4olios o4 its 7lients t%e wealt% manager keeps an up to date
in4ormation o4 %ow 7ompanies produ7ts are per4orming and 7on8in7e t%e 7lient t%at w%. t%eir
produ7t is still a better 7%oi7e.
C/*PT#R 29 C&MP#TIT&R *!*)1SIS
In toda.Fs market, t%ere is a %uge 7ompetition 4or e8er. single produ7t. 5%e 7ompan. %as to keep a
7onstant and updated re7ord o4 its 7ompetitorsF strateg. and a7t a77ordingl..
62 | P a g e

Comparati8e studies o4 t%e 8arious produ7ts wit% its 7ounter produ7ts are done.
As an example, 7omparati8e stud. o4:
5erm plans wit% return o4 premium, and
3i4e Insuran7e traditional plans & mone. ba7k poli7ies
%as been s%own in t%e Appendix.
5%ese 7omparisons s%ows t%at %ow betterGpoor t%e 7ompan.Fs produ7ts are re8iewed in t%e market.
/oes an. 7%ange is reAuired or t%e 7ompan. s%ould 7ome up wit% new plans et7.
C/*PT#R 39 -I!"I!0S *!" R#S')TS
63 | P a g e

5%e pro7ess o4 wealt% management in t%e bank is a manual one and reAuires a lot o4 %ard work and time to
be dedi7ated. It is a %e7ti7 pro7ess. A lot o4 paperwork is done to estimate t%e 8alues and explain.
5o make t%e pro7ess a bit simpler, a *#!HT&: for+ %as been prepared 4or t%e wealt% manager w%i7%
would make t%e wealt% manager more trust wort%. and 7an produ7e results instantl..
So, along wit% using t%e manual Auestionnaire, t%e wealt% manager 7an also use t%e ex7el s%eet 4orm w%i7%
would produ7e results instantl.. 5%e 4orm 7o8ers all t%e same details in a pre7ise 4orm and would sa8e a lot
and time o4 bot% t%e 7ustomer and t%e banker.
5%is 4orm uses all t%e reAuired in4ormation t%at t%e manual 4orm does but in pre7ise manner. It 7ombines
t%e results o4 t%e 8arious 7al7ulators used indi8iduall. into one 7ommon result.
5%e 4orm %as been atta7%ed in t%e appendix.
;elow is t%e example o4 t%e 4orm:
6igure ': S7reens%ot o4 t%e Ris%te. 4orm
In t%e 4orm, as per t%e 8alues entered in t%e green 7olour 7ells, t%e minimum amount o4 in8estment reAuired
is 7al7ulated.
64 | P a g e


C/*PT#R 49 C&!C)'SI&!
Studies %a8e s%own t%at people are now more interested in sa8ing t%eir mone. rat%er t%an spending. And
instead o4 just simple sa8ing, t%e. want to sa8e it in su7% a wa. t%at t%e. 7an earn pro4its out o4 it. So t%e.
look out 4or a8enues 4or in8esting. 5%e market is 4ull o4 su7% a8enues but t%e la7k o4 proper and 7onsistent
knowledgeR t%e. o4ten 4ail to in8est in su7% a wa. t%at 4ul4ils t%eir expe7tations. !an., on t%e ot%er %and,
are a4raid o4 in8esting in t%e market due to la7k o4 trust and 7on4usion.
:arlier, to in8est, t%e 7ustomer %ad to go to di44erent a8enues and in8est. 5%is takes a lot time and more
importantl. t%e amount in8ested is eit%er abo8e or below t%e reAuired le8el. it% no e44i7ient 7onsultant,
t%e 7ustomer loses a lot o4 mone.. 5%is is w%ere t%e role o4 wealt% managers 7omes.
ealt% !anagers do t%eir best to in8est t%e mone. o4 t%e 7ustomer in su7% a wa. t%at earns maximum
possible gains. ;ut t%e problem t%at t%e 7ustomer 4a7ed was:
i. 3a7k o4 trust
ii. 3a7k o4 7onsistent knowledge about t%e produ7ts and market
iii. Hig% 4ees 7%arged
i8. 3a7k o4 transparen7.
8. !ore o4 impersonal approa7% b. t%e wealt% managers.
;ut w%en t%e same ser8i7es were started being pro8ided b. t%e banks, t%e 7ustomers were mu7% positi8e
about sa8ing t%eir mone. 8ia t%ese a8enues.
65 | P a g e

;anks %a8e re7ei8ed su7% positi8e re8iew as t%e 7ustomers are alread. a77ustomed to t%e bankers. So t%e
7ommuni7ation and understanding between t%e two parties is Auite well establis%ed. 5%is earns trust on t%e
bankFs wealt% manager. 5%e. 7an make t%e 7ustomer understand t%e 7on7epts and pro7esses o4 an.
in8estment produ7t. Also t%e relation wit% t%e bank impro8es.
5%us, banks pro8iding ser8i7es ot%er t%an t%e 7ore banking ser8i7es is a pro4itable 8enture 4or bot% t%e bank
and t%e 7ustomer.
)IMIT*TI&!S and C*V#*TS
5%e 7onstraints 4a7ed w%ile doing t%e proje7t are as 4ollows:
,. 5%e major 7onstraint was t%at t%e wealt% 7ustomers being H# 7ustomers, t%e bank was not allowed to
pro8ide wit% t%eir details.
*. !aking t%e 7ustomer understand t%e 7on7ept o4 wealt% management is a little easier w%en it 7omes to
7on8in7e t%em to pur7%ase t%e produ7ts t%at t%e bank is o44ering.

S'00#STI&!SJR#C&MM#!"*TI&!S
66 | P a g e

it% t%e knowledge I %a8e gained w%ile doing t%e interns%ip, t%ese are t%e 4ollowing
re7ommendationsGsuggestions I %a8e:
,. 5%e bank mainl. 7aters to t%e %ig% end 7ustomers. It s%ould tr. 4o7ussing on t%e middle in7ome
and low in7ome group also to expand t%eir operations.
*. 5%e bank %as kept its operational restri7tions little %ig%er. :.g.: t%e minimum a8erage mont%l.
balan7e to be maintained in t%e sa8ings a77ount is Rs. ,)))) w%i7% is a little %ig%er 4or man.
7ustomers. Su7% boundaries 7an be eased to get more 7ustomers.
(. Ln t%e o77asion o4 Aks%a.atriti.a, it was obser8ed t%at t%e gold rates in t%e bank were %ig%er
t%an t%e market rates and t%e denomination o4 t%e gold 7oins. 5%oug% it 7annot be asked to
7%ange t%e rates but atleast t%e denominations o44ered 7ould %a8e been more.
=. #o edu7ation loan is being pro8ided b. t%e bank .et. 5%e bank 7an look into it too.
R#-#R#!C#S
%ttp:GGwww.ibm.7omGde8eloperworksGrationalGlibrar.Go7t)'G%an4ordGindex.%tml
%ttp:GGtti.tamu.eduGdo7umentsG)1''(=1,.pd4
%ttp:GGwww.indusind.7omGindusindGw7msGenG%omeGtop1linksGmedia1roomGpress1
releasesGA=\pr\,,\,*.a8s6ilesGP/6G6inalQ*)PressQ*)Release1
Q*)Q*)W=Q*)6T,*Q*)results.pd4
%ttp:GGwww.mone.7ontrol.7omGp4GguidesGIn8estmentLption.%tm
%ttp:GGwww.legalandgeneral.7omGli4e17o8erG7on4used1about1li4e17o8erGarti7les1and1guidesGli4e1
7o8er1jargon1busterG
%ttp:GGwww.in8estment.ogi.7omGtaxesGtax1sa8ing1options1under1se7tion1?)7.aspx]
67 | P a g e

%ttp:GGwww.4inan7enin8estments.7omGin8estmentGdi44erent1in8estment1options.%tml
%ttp:GGbusinesstoda..intoda..inGstor.Gromes%1sobti1indusind1bankG,G,@@=@.%tml
%ttp:GGwww.mout%s%ut.7omGprodu7t1re8iewsGIndusInd1;ank1re8iews1@*'))==@?
%ttp:GGwww.in8estmentba9ar.7om
%ttp:GGwww.bimadeals.7om
%ttp:GGwww.ijagoin8estor.7om
%ttp:GGwww.angelbroking.7om
%ttp:GGwww.m.insuran7e7lub.7om
%ttp:GGwww.in8estopedia.7om
%ttp:GGwww.m.poli7.ba9ar.7om
68 | P a g e

*PP#!"I$
*PP#!"I$ *(9 #ducational Cost Calculator
69 | P a g e

EDUCATIONAL COST CALCULATOR - AVIVA YOUNG SCHOLAR
INPUT IN GREEN CELLS ONLY
Age of Parent 35
Age of Child 5
Profeion Engineer
!ee for the deired Profeion 1000000
Age of the "id #hen $one% i re&'ired 20
Inflation rate 5%
Ter$ a(aila)le for in(et$ent 15
Val'e of fee at $at'rit% after inflation 20,78,928
70 | P a g e

*PP#!"I$ *+9 Retirement Planner
*PP#!"I$ *.9 /)V Calculator
71 | P a g e

72 | P a g e

Plee note*- Cell ha(ing
the +olo'r ho'ld not )e +hanged, It affe+t the +al+'lation
Onl% the +ol'$n ha(ing +olo'r need to )e entered,

H'$an Life Val'e - HLV !or$ .


Yo'r Age -Co$/leted
Year. 30 (Round Off)
Yo'r Retire$ent Age 60 (Round Off)

Ann'al Gro In+o$e A$o'nt-INR.
780000.0
0 (Figure in lacs)
less personal Expense including axes!
585000.0
0 (Figure in lacs)

A$o'nt 'ed for !a$il%
195000.0
0 "#$%

HLV fa+tor a /er Age 3900000
Gro H'$an Life Val'e

Less "i&uid
#sses!! (Figure in lacs)
%a'ings (an) (incl. $as*) 18.00
Fixed +eposis 20.00
,os -..ice +eposis 0.00
/e0eller1 13.00
#n1 -*ers (2Fs3%*ares) 45.00
96.00 (Figure in lacs)

Less Exising "i.e 5nsurance ( %u6 #ssured -nl1) 250.00 (Figure in lacs)
3899654 (Figure in lacs)

Add $urren "ia7iliies !!! (Figure in lacs)
$redi $ard -usanding 0.02
,ersonal "oan ousanding 0.00
8e*icle "oan -usanding 0.00
9ousing "oan -usanding 0.00
#n1 o*ers ("oan ousanding) 0.00
0.02 (Figure in lacs)

Add 2one1 8alue o. +rea6s .or res o. li.e !!!!
(Figure in lacs)
:our c*ild;s educaion 25.00
$*ild;s 6arriage 30.00
9olida1 ,lanning 50.00
<eire6en planning 80.00
-0ning *ouse 0.00
-0ning $ar 0.00
185.00 (Figure in lacs)

H'$an Life Val'e 3899839 (Figure in lacs)

! =*is is *e 6one1 1ou spend on 1oursel. > o0ards axaion

!! #n1*ing *a can 7e con'ered ino cas* in nex 7 da1s can 7e er6ed as a li&uid
asse e.g. $as*, F+, (an) %a'ings, 2Fs, %*ares ec.

!!! =*is is *e a6oun ousanding agains 1ou e.g. *ousing loan, personal loan, credi
card ousanding ec.

!!!! =*is 0ould 7e *e cos or 'alue o. 1our drea6s > aspiraions relaed o
? :our c*ild;s educaion

*PP#!"I$ *29 Ta7 Calculator
0122-0120


TA3
CALCULATOR


4onth 5ai+
HR
A
S/,
Allo
#,
Con(
e%,
Allo#
,
Other
Gro
Salar%
P!6V
P!
I, Ta7
P,
Ta
7
Net
Sala
r%

#pril 0 0 0 0 0 0 0 0 0

2a1 0 0 0 0 0 0 0 0 0

/une 0 0 0 0 0 0 0 0 0

/ul1 0 0 0 0 0 0 0 0 0 0

#ugus 0 0 0 0 0 0 0 0 0 0

%epe67er 0 0 0 0 0 0 0 0 0 0

-co7er 0 0 0 0 0 0 0 0 0 0

73 | P a g e

@o'e67er 0 0 0 0 0 0 0 0 0 0

+ece67er 0 0 0 0 0 0 0 0 0 0

/anuar1 0 0 0 0 0 0 0 0 0 0

Fe7ruar1 0 0 0 0 0 0 0 0 0 0

2arc* 0 0 0 0 0 0 0 0 0 0

TOTAL 1 1 1 1 1 1 1 1 1 1



Parti+'lar
A$o
'nt
GROSS SALARY
INCO4E
1

ADD *
PER"S
Per8
9-A%5@B 0
$o."eased #cco66odaion
? %ar +ae
01?
#pr?
09

-=9E<% 0
9ouse "ease ? <en per
6on*

1 -*ers 0

LESS *
DEDUCTIONS U6S
21

9<#
<E(#=E
0
HRA
Re)ate

$-@8E:#@
$E
0 $i1 ? 2ero 3 @on?6ero 2ero
1 <en per 6on* 0

LESS *
DEDUCTIONS U6S
29

,<-FE%%5-@ =#C 0

LESS * HOUSING LOAN
INTEREST
1
In(et$ent for
Ta7 Relief
A$o
'nt

9ousing "oan ? 5neres 0
LESS *
DEDUCTIONS U6S
:1

%,E$5F5E+
5@8E%=2E@=% ?
80$
0 2ediclai6 ? 80+ 0
2E+5$"#52 ? 80+ 0
<epa16en o. Educaion
"oan ? 5neres
0
E+A$#=5-@ "-#@ ?
80E
0 -*ers ? 80++3 80++( ec. 0
-=9E<% 0
1
SPECI!IED INVEST4ENTS
- :1C

74 | P a g e


$onri7uion o ,ro'iden
Fund 3 8,F
0
TA3A5LE INCO4E 1 "i.e 5nsurance ,re6iu6 0
,re6iu6 ? ,ension ,lan 0
TA3 ON NET
SALARY INCO4E
1 ,,F 0
#++ D %A<$9#<BE 1 @%$ 0
1 @%$ 5neres 0
2uual Fund 0
#++ D E+A$#=5-@
$E%% E 3%
1 A"5, 0
9ousing "oan ? ,rincipal 0
NET TA3 PAYA5LE 1 -*ers 0
5n.rasrucure (onds 0
LESS * TA3
DEDUCTED
1
TOTAL -$a7$ li$ited to
R; 2;11;111.
1

5AL, TA3 PAYA5LE 6
-E3CESS DEDUCTED.
1 Bender ? 2ale 3 Fe6ale 2ale


Di+lai$e
r *
Thi +al+'lator gi(e an a//ro7i$ate ta7 +al+'lation and i
')<e+t to ')$iion of a+t'al in(et$ent /roof,
*PP#!"I$ *39 Rishtey -orm
ener onl1 *e cells 6ar)ed green
Rihte%
Ener +-( 19?-c?59

2 Age -in %ear. =0

0 Ann'al Gro In+o$e >>1111

? Ann'al Peronal E7/ene in+l'ding ta7e 211111

@ Ann'al A$o'nt a(aila)le for !a$il% - 0-?. :>1111
75 | P a g e


= HLV !a+tor 21

9 Gro H'$an Life Val'e :>11111

A Li&'id Aet 2=1111

: E7iting Life In'ran+e - S'$ A'red Onl% . =111111

> Lia)ilite 2>111

21 4one% (al'e of Sa/ne% a on toda% for ret of life 21111111


4ini$'$ A$o'nt to )e in(eted 2?A9>111
-inancial Sapney
!inan+ial
Sa/ne%
Ti$e to a++o$/lih 4ere
Sa/ne%- no of %ear.
4one% Val'e of 4ere
Sa/ne a on toda%
4one% Val'e of
4ere Sa/ne for
!'t're Priorit%

<eire6en 8 1000000 2000000 2

5n'es6en 5 700000 1300000 7

%a'ings 10 6

9eal* 5

=er6
#ssurance 4

Esae ,lanning 3

76 | P a g e

:oung c*ildren 1
! 9"8 Facors
upo 35 22
36? 45 15
46?50 12
51? 60 10
60 and a7o'e 7
No of %ear 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Inflation !a+tor 1.2 1.3 1.4 1.5 1.6 1.6 1.7 1.8 1.9 2 2.1 2.2 2.3 2.4 2.5 2.6 2.8 3
@o o. 1ears 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
5n.laion Facor 3.1 3.2 3.4 3.5 3.7 3.9 4.1 4.3 4.5 4.7 5 5.2 5.5 5.7 6 6.3 6.7 7
*PP#!"I$ *49 Comparati8e Statement of 0old rates as on *kshayatritiya (C%(
Seller Name 10 gms
Bank of Baroda 30376
IndusInd Bank 32000
Allahabad Bank 30388
SBI 30841
77 | P a g e

Bank of India 310!
I"I"I Bank 334!
#elian$e Se$uri%ies 34263
&NB 32166
'anish( 33!20
)*+" Bank 34220
*PP#!"I$ *59 Comparati8e Statement of Term Plans
Comparitive Study of Term I!ura"e
+ea%ure,In
surer
A-i-a .ife
Shield
Ad-an%age
SBI .ife
Smar%
Shield
I"I"I
&ruden%ial
.ife /uard
0e%life
Suraksh
a &lus
BS.I
'erm
&lan
Bhar%i A1A
.ife &ro%e$%
&lus
#ey
$eature!
#eba%e on
2remium
for high
sum
assured
#eba%e
on
2remiu
m for
high
If %he
2oli$3
holder
sur-i-es
%ill
/uaran%e
ed
re%urns
of 104
of
#eba%es
offered
for sum
assured
of #s5!
Assured
2a3men% of
!52! %imes of
%he base
2remium if
78 | P a g e

sum
ma%uri%36
%he
s$heme
2ro-ides
e7%ended
insuran$e
$o-er for
2remium lakhs and
%he insured
sur-ies %he
&ro%e$%ion
agains%
&'*,"ri%i$
al illness
lo8
$os%
.o8
$os%6
.o8 risk
2lan
.o8 $os%
and )igh
$o-er
+ree .o$k
2eriod 91!
da3s from
re$ei-ing %he
2oli$3:
*ifferen%ial
2remium
for
females
S2e$ial
re8ards
for
main%ai
ning
heal%h3
lifes%3le
*ifferen%
2remium
2a3ing
modes
as 2er
in$ome
$3$les
*ifferen%i
al
2remium
for
females
/ra$e 2eriod
for rene8al
930 da3s:
%try age
18;!!
3ears
18;6!
3ears
18;!!
3ears
18;!0
3ears
18;!!
3ears 8;60 3ears
&aturity
age 6! 3ears
70
3ears 6! 3ears 6! 3ears 70 3ears 70 3ears
Po'i"y
term
10;30
3ears
!;30
3ears
10;30
3ears
1!;20
3ears
10;20
3ears 10 3ears
Premium
Payig
term
Single or
#egular
i5e5
3earl3,half
;
3earl3,(ua
%erl3 or
mon%hl3
Single
or
#egular
i5e5
3earl3,h
alf;
3earl3,(
ua%erl3
or
mon%hl3
Single or
#egular
i5e5 3earl3,
half;
3earl3,
(uar%erl3
or
mon%hl3
Single or
.imi%ed
93 3ears:
or
#egular
i5e5
annual
or semi;
annual
Single or
#egular
i5e5
annual,se
mi;
annual,(
uar%erl3
or
mon%hl3
Annual,semi;
annual,(uar%e
rl3 or
mon%hl3
Sum
a!!ured
26006000;
!06006000
9if regular:
and no
limi% 9if
single:
2!600600
0;no
limi%
106006000;
no limi%
20600600
0;no
limi%
26006000;
no limi%
16806000;no
limi%
&iimum
Premium 26400 25a5
1!000
or !000
25a5
16000
a22ro7 36600
66000
a22ro7 !600 25a5
(aiver of
premium
)eefit
N5A5 N5A5 A-ailable N5A5 a-ailable N5A5
*ider!+
,""ideta'
-eat. N5A5
a-ailabl
e A-ailable a-ailable a-ailable N5A5
Criti"a'
I''e!! A-ailable
a-ailabl
e N5A5 a-ailable a-ailable N5A5
,""ideta'
-i!a)i'ity A-ailable
a-ailabl
e A-ailable N5A5 N5A5 N5A5
#e-ie8
It i a ter$
in'ran+e
/lan #hi+h
offer ret'rn
of /re$i'$
It i a
ter$
in'ran+e
/oli+%
that
i% is a
basi$ and
2ure %erm
2lan
I% has
lo8 and
affordabl
e
It i a /'re
ter$
in'ran+e
/oli+%
#hi+h
I% is a %erm
2lan 8hi$h is
$om2rehensi
-e in na%ure
79 | P a g e

on $at'rit%,
The
/re$i'$
/aid ann'all%
are ret'rned
if the /oli+%
holder
'r(i(e the
ter$ of the
/oli+%,
offer a
high
+o(erage
at an
afforda)l
e
/re$i'$,
It i a
/'re ter$
/lan #ith
no
$at'rit%
)enefit
and
offer
onl%
death
)enefit,
2remium
s for
-er3
high
$o-erage
as i%
gi-es
large
sum
assured
dis$oun%
5 'hus if
%he life
insured
dies
8i%hin
%he
2oli$3
%enure6
%he
offer high
+o(erage at
lo#
/re$i'$,
Thi /oli+%
i &'ite
afforda)le
e(en at
lo#er
+o(erage,
and gi-es
benefi%s %o
%he famil3 -ia
riders5 I% is a
good $o-er a%
lo8 $os%5
*PP#!"I$ *69 Comparati8e Statement of Traditional Plans
80 | P a g e

Comparative study of Traditional Insurance Plans -
Money Back Policies
A<I<A ;
*han
<riddhi
SBI .ife ;
Smar%
0one3 Ba$k
Insuran$e
I"I"I &ru
"ashBak
)*+" S.
Ne8 0one3
Ba$k &lan
BS.I 0one3
Ba$k &lus
&lan
=S&s
/uaran%ee
d Addi%ions
>74 of life
$o-er
e-er3 3ear
%ill ma%uri%3
/uarateed
fi0ed "a!.
if'o1!
/uarateed
additio! 2
3354
itere!t
"ompuded
aua''y for
fir!t 4 yr!
p'u! ve!ted
)ou!e!
155254 for 4
year! 6
)ou!e!
Surviva'
)eefit rate +
5357553964
p3a3 after 3rd
year
Need no%
2a3
2remiums
for las%
3ears of
%he %erm
/uaran%eed
Sur-i-al
Benefi% of
1104 %o
12!4 of
Sum
Assured
2aid %ill
ma%uri%3
?7%ended
life $o-er ;
!04 of SA
8i%hou%
2a3men% of
an3 fur%her
2remium
-i!"out o
S, 7 58
+le7ible
8i%hdra8l
o2%ion6
&re2onemen%
of 2oli$3
ma%uri%3 da%e
Ca opt for
5 rider!+
,""ideta'
-eat.
9eefit
:,-9; rider<
,viva C.i'd
%du"atio
rider< ,viva
-read
-i!ea!e
rider< ,viva
=ea't.
/uard rider<
,viva Term
P'u! rider
(ide rage
of additioa'
)eefit! 5
S9I 8ife 5
,""ideta'
-eat.
9eefit
*ider< S9I
8ife 5
,""ideta'
Tota' >
Permaet
-i!a)i'ity
*ider< S9I
8ife 5
Preferred
Term *ider<
ad S9I 8ife
5 Criti Care
13 ?o
8i@ed *ider3
,""idet ad
-i!a)i'ity
9eefit
*ider<
,""idet
9eefit
*ider<
Criti"a'
I''e!!
9eefit *ider 5
In$reased life
$o-er af%er
e-er3 2oli$3
3ear
"an %ake
loan agains%
%he 2oli$3
#eba%e on
SA for @ 1.
8arge Sum
,!!ured
di!"out
=2%o !04
addi%ions A
-es%ed
bonuses a%
5 ,""ideta'
-eat. ad
-i!mem)erm
et *ider
81 | P a g e

ma%uri%3 :,-- rider;

&l
an
*e
%ail
s
?n%r
3
Age 13555 yr! 14558 yr! 16555 yr! 14553 yr!
30 day! 5 60
yr!
0a%
uri%3
Age 23570 yr! 26570 yr! 31570 yr! &a0 65 yr! &a0 70 yr!
&' 10520 yr!
12A15A20A25
yr! 15A20 yr!
12A16A20A24
yr!
&i 10 ad
ma0 40 yr!
&&' PT55 Same a! PT Same a! PT Same a! PT Same a! PT
Ann
ual
&re
miu
m &i *!3 5# *!3 4<500
&i *!3
6000
*! 9333 at
30 yr! for
*!3 28 S,
*!320618 for
25 yr! age
ad *!320778
for 35 yr! age
for *!3 28 S,
&i *!3 9600
ad mu'tip'e!
of *!3 1200
SA &i *!3 50#
&i *!3
75000 ad
mu'tip'e! of
*!3 1000
t.ereafter
&i *!3
75<000
-eped! o
premium
!e'e"ted
-eped! o
premium
!e'e"ted
&re
miu
m
+re(
uen
$3
Bear'yA=a'f5
year'yACuart
er'yA&ot.'y
Bear'yA=a'f5
year'yACuart
er'yA&ot.'y
Bear'yA=a'f5
year'yA&ot.
'y
Bear'yA=a'f5
year'yACuarter
'yA&ot.'y
Bear'yA=a'f5
year'yACuarter
'yA&ot.'y
82 | P a g e

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